A CONCEPT NOTE ON TRADE IN ENVIRONMENTAL SERVICES:
TOWARDS THE FORMULATION OF A STRATEGIC FRAMEWORK
AND ACTION PLAN FOR THE
CARIBBEAN COMMUNITY SINGLE MARKET AND ECONOMY1
Prepared by
CaribInvest (West Indies) Ltd2.
For
The Caribbean Community Secretariat
January 2009
1
2
© CaribInvest (West Indies) Ltd. And the Caribbean Community Secretariat.
This concept note was prepared by Dr. Mark D. Griffith for CaribInvest (West Indies) Ltd. Dr. Griffith is an environmental and legal specialist.
i
A Concept Note on Trade in Environmental Services: Towards the
Formulation of a Strategic Framework and Action Plan for the
Caribbean Community Single Market and Economy (CSME).
—————————————————————————————————
—————————————————————————————————
By:
Mark D. Griffith, (B.A. Hons.); Ph.D.; LL.B. (Hons); LLM (Corp. and Commercial); MCIArb.
For:
CaribInvest (West Indies) Limited, Barbados.
ii
Published by:
Caribinvest Publishing
Suite 9, “Fenshaw”
Pine Plantation Road,
St. Michael
Barbados.
info@caribinvestwiltd.com
for
CaribInvest (West Indies) Ltd. and the Caribbean Community Secretariat
CaribInvest (West Indies) Limited welcomes feedback, comments and suggestions on this document as this is
considered as work in progress, as the Caribbean Community and its Member States undertake policy measures to
develop the service sector in the CSME Zone. The feedback should be sent to CaribInvest (West Indies) Ltd. At
info@caribinvestwiltd.com or uploaded via info@caribinvestwild.com/contact.html
Acknowledgements
CaribInvest (West Indies) Limited would like to specially thank Dr. Griffith for agreeing to preparing this document
on its behalf. For this we are indeed thankful. We wish also to thank the reviewers of this document. In this regard,
special thanks are extended to Professor Bishodat Persaud and Leandra Sebastien for their critical review of the
document and the many useful suggestions.
CaribInvest (West Indies) Limited would also like to express it gratitude to the Ministries with responsibility for
Environment and Trade Policy of the Member States of the Caribbean Community as well as the enterprises
throughout the CSME Zone which took the time and the patience to respond to our Survey on trade in Environmental
Services. For this we are indeed very grateful. Last but not least, special thanks must be extended to our Director of
Corporate Affairs, Ms. Odette M. Bateta who co-ordinated this assignment and provided the necessary logistical
support.
——————————————————————————————————————————
Citation: Griffith, M.D., A Concept Note on Trade in Environmental Services: Towards the Formulation of a
Strategic Framework and Action Plan for the Caribbean Community Single Market and Economy (CSME). Prepared
for CaribInvest (West Indies) Limited and the Caribbean Community Secretariat, CaribInvest (West Indies) Limited
and the Caribbean Community Secretariat (CARICOM), January 2009.
© CaribInvest (West Indies) Limited and the Caribbean Community Secretariat (CARICOM), January 2009. All
Rights Reserved.
The views expressed in this document are those of the author and do not necessarily reflect the views of either
CaribInvest (West Indies) Ltd., and/or the Caribbean Community Secretariat (CARICOM).
iii
TABLE OF CONTENTS
Table of Abbreviations..................................................................................................................................................v
Forward…....................................................................................................................................................................vi
1. Introduction ………………………………………………………………………………………………………1
2. International Legal Framework for Trade in Services .............................................................. …………. …3
The General Agreement on Trade in Services Its Relevance to Trade in Environmental Services…………………..3
Defining Environmental Services……………………………………………………………………………………..5
Existing Classifications………………………………………………………………………………………………..6
3. The Scope and Nature of the Environmental Services Sector in the CSME Zone................. ……………...13
Definition and Classification of Environmental Services in the CSME Zone..............................................................13
Paucity of Data and Information………………………………………………………………… …………………13
The Structure of the Environmental Service Sector in the CSME..................................................... ………………..14
Pollution Management Group ………………………………………………………………………………………..14
Information Knowledge/Capacity Group……………………………………………………………………………..16
Cleaner Technology and Production Group……………………………………………… ………………………...16
Resource Management Group……………………………………………………………………………………… 16
4. Creating an Enabling Environment……………………………………………………………………………..19
The Legal and Institutional Framework………………………………………………………………………............19
Financing and Investment in the Environment………………………………………………………………………..21
Mainstreaming Sustainable Practices in the Financial Sector………………………………………………………...22
Incentives……………………………………………………………………………………………………………...22
Procurement Procedures………………………………………………………………………………………………23
Human Resources……………………………………………………………………………………………………..23
5. Analysis of Present and Future Opportunities Including Potential Factors which are
Likely to Contribute to the Growth of Environmental Services in the CSME Zone…………………………25
Potential Factors which are likely to contribute to the Growth of Environmental Services in the
CSME Zone…………………………………………………………………………………………………………...25
6. Recommendations with Respect to Policy Actions, Data Gaps and Legislative Changes……………………28
International Level……………………………………………………………………………………………………28
Classification of Environmental Services…………………………………………………………………………….28
Creating an Enabling Environment……………………………………………………………………………...........28
Regional Legislative Measures………………………………………………………………………………………..28
Financing and Investing in the Environment………………………………………………………………………….29
Human Resources……………………………………………………………………………………………………..29
Conclusion…………………………………………………………………………………………………………….30
ANNEX 1. Service Sectoral Classification List…………………………………………………………………….. 31
ANNEX 2. Approved GEF National and Regional Project Involving Only the Member States
Of the Caribbean Community 1994-2009 (January)……………………………………………………37
iv
TABLE OF ABBREVIATIONS
BFREE
BOO
BOT
BPOA
CAP
CARICOM
CARIFORUM
CCCCC
CCESI
CCJ
CCP
CCTF
CDEMA
CDERA
CEHI
CENRPF
CIP
CNIRD/PISLM
COTED
CPC
CREW
CROSQ
CSME
EC
EU
EIA
EPA
EPP
ESDIF
ESDIF
GATS
GEF
HS
ICTSD
IADB
LLCS
MARPOL
IMF
MDG
MEA
NAMA
NGO
NTFP
OECD
PPP
RSF
RT
SIDS
SIDS/TAP
TNC
TOC
UNCED
UNCTAD
Belize Foundation for Research and Environmental Education
Built Operate Own
Built Own Transfer
Barbados Programme of Action
Community Agricultural Policy
Caribbean Community
Caribbean Forum of African, Caribbean and Pacific States
Caribbean Community Climate Change Centre
Caribbean Community Environmental Standards Institute
Caribbean Court of Justice
Cruise Line Seasonal Passport
Caribbean Community Trust Fund
Caribbean Disaster and Emergency Management Agency
Caribbean Disaster Emergency Response Agency
Caribbean Environmental Health Institute
Community Environment and Natural Resource Management Policy Framework
Community Industrial Policy
Caribbean Network For Integrated Rural Development/Partnership Initiative on Sustainable
Land Management.
Committee on Trade and Economic Development
Central Product Classification
Caribbean Revolving Fund For Waste Water Management
Caribbean Regional Organisation for Standards and Quality
Caribbean Community Single Market and Economy
European Communities
European Union
Environmental Impact Assessment
Economic Partnership Agreement
Environmentally Preferred Products
Environment and Sustainable Investment Facility
Environment and Sustainable Investment Facility
General Agreement on Trade in Services
Global Environment Facility
Harmonized System
International Centre for Trade and Sustainable Development
Inter-American Development Bank
Low-lying Coastal States
International Convention for the Prevention of Marine Pollution from Ships, 1973 as
modified by the Protocol of 1978 relating thereto (MARPOL 73/78) International Monetary Fund
Millennium Development Goals
Multilateral Environment Agreements
Negotiating Group on Non-Agricultural Access
Non Governmental Organisation
Non-Timber Forest Product
Organization for Economic Cooperation and Development
Public-Private Partnerships
Regional Sustainable Fund
Revised Treaty
Small Island Developing States
Small Island Developing States Technical Assistant Programme
Trade Negotiating Committee
Treaty of Chaguaramas
United Nations Conference in Environment and Development
WASA
UNEP
United Nations Conference on Trade and Development
Water and Sewage Authority
United Nations Environmental Programme
WTO
World Trade Organisation
v
FORWARD
This paper provides a sound basis for the consideration of trade in environmental services in the CARICOM Single
Market and Economy (CSME) Zone. In the absence of specific information and data on the environmental service
sector in the CSME, this work is considered as work in progress. Since the activities which are undertaken in the
Region to produce environmentally sound technologies and goods as well as services to measure, prevent, limit,
minimize or correct environmental damage to water, air, soil and ecosystems, have not been regarded as an industry
in its own right; a major function of this paper is to create awareness of the existence of an environmental industry in
the Caribbean Community. It also serves to highlight, that like any other industry of the regional economy,
investment must be made to sustain sustainability. This is also the case of the environmental industry. Furthermore,
given the multi-dimensional and multi-sectoral characteristics of the environment, investment in the environment,
which is required, is consequently an investment in the social and economic development of the CSME.
It is on this philosophical basis that the work of CaribInvest (West Indies) Limited is grounded. Central to its
philosophy, is the promotion of the Caribbean as a single market place and in so doing facilitate the utilisation of the
region’s assets efficiently, effectively and where applicable in an environmentally sensitive and sound manner.
CaribInvest (West Indies) Limited employs an integrated approach in the consideration of the Community’s assets by
linking various elements such as investment, finance and international trade with proper environmental stewardship.
It is within this context, that the Caribbean Court of Justice (CCJ) has a very critical role to play in ensuring that the
environmental and natural resources provisions of the Revised Treaty of Chaguaramas Establishing the Caribbean
Community Including the CARICOM Single Market and Economy are given the full effect of Caribbean Community
Law.
Underpinning the consideration of trade in environmental goods and services in the CSME Zone is the pivotal role
played by the environmental and natural resource base in the social and economic development of the Region. Yet
any environmental damage which results from other economic activities is not adequately reflected in economic
valuation. The need therefore exists, to measure environmental damage and to ensure that growth exceeds
environmental loss; and that part of that growth is used to reduce and compensate for environmental damage, so that
growth could be put on a more sustainable path.
The concept paper is divided into five sections. The Introduction provides the overall legal context for the
consideration of trade in environmental services in the CSME Zone. It argues the case, that in addition to the
Community Industrial Policy and the Community Agricultural Policy, a third dimension––the protection of human,
animal and plant life or health and the sustainable management and utilisation of the Community’s natural
resources–—can be carved out, as a distinct policy framework. Section two places the consideration of trade in
environmental service in the CSME, within the broader international context of the negotiations taking place in the
WTO on trade in service. The various classification schemes which are being used to define environmental goods are
reviewed and the difficulties highlighted. The scope and nature of the environmental service sector is addressed in
Section three. Drawing on the various classification systems which exist; a classification system for environmental
services that better reflect the reality in the CSME Zone is proposed and used as a basis for examining the structure
of the sector.
Section four addresses the creation of an enabling environment to facilitate the growth and expansion of the
environmental sector in the CSME. Issues which are highlighted include the need for the completion of the
establishment of the legal and institutional modalities necessary for the effective implementation of the “full
integration of the national markets of Member States of the Community into a single, unified and open market area”,
pursuant to Article 78.2. (a).RT; one of the fundamental objectives of the Caribbean Community. Section Five
examines the present and future opportunities including the potential factors which are likely to affect the growth of
environmental services within the CSME Zone. The final section—Section Five—propose recommendations with
respect to legislative changes, policy action and data gaps.
CaribInvest (West Indies) Limited.
www.caribinvestwiltd.com or
http://www.caribinvestwiltd.com/contact.html
January, 2009
vi
1. INTRODUCTION
The development of the service sector, pursuant to
Article 54 of the Revised Treaty of Chaguaramas
Establishing the Caribbean Community Including the
CARICOM Single Market and Economy (hereafter
referred to as either the Revised Treaty or RT), is to
stimulate economic complementarities and accelerate
economic development in the Caribbean Community
and its Member States. The development of the
service sector in the Caribbean Community is an
integral part of the Community Industrial Policy
(CIP), which has as its goal; market-led,
internationally
competitive
and
sustainable
production of goods and services for the promotion
of the Region’s economic and social development3.
The CIP along with the Community Agricultural
Policy (CAP) form the backbone of the Community’s
production integration4 framework. However, it has
been argued5 that a third dimension––the protection
of human, animal and plant life or health and the
sustainable management and utilisation of the
Community’s natural resources–—can be carved out
of the CIP and CAP, as a distinct policy framework.
This dimension includes, but not limited to,
environmental
protection;
natural
resources
management, including forests and oceans; land
management and rural development; biodiversity and
intellectual property elements of biodiversity;
sustainable tourism development and a range of
environmental measures including standards and
technical regulations6. It also includes the use of the
general exceptions, by Member States, pursuant to
Article 226.RT, to justify RT inconsistent measures,
but only if such measures do not constitute arbitrary
or unjustifiable discrimination between Member
States where like conditions prevail, or a disguised
restriction on trade within the Community. The range
of environmental related activity, pursuant to Article
111.1. (d).RT, which could benefit from subsidies,
under certain circumstances, also constitutes part of
the environmental and natural resources policy
framework.7.
The decision of the Ministers of Environment of the
Caribbean Community8 at the Twenty-Fifth Special
Session [Environment] of The Committee on Trade
and Economic Development (COTED) to mandate
the formulation of a Community Environment and
Natural Resource Management Policy Framework
(CENRPF) is vindication of this approach. It is this
dimension—the environmental and natural resource
base—of the Community which forms an integral
part of the environmental industry in the CSME
Zone9. Generally, however, there is little appreciation
of the existence of an environment industry in the
CSME Zone. The environment industry consists of
“activities which produce goods and services to
measure, prevent, limit, minimise or correct
environmental damage to water, air, soil, as well as
problems related to waste, noise and eco-systems.
This includes cleaner technologies, products and
services that reduce environmental risk and minimize
pollution and resource use”10.
To support the protection, management and
sustainable utilisation of the Community’s
environment and natural resource base, the Caribbean
Community is mandated, pursuant to Article 58.RT,
to adopt measures for:
3
Article 51.1.RT
Includes, as per Article 52.8.RT: (a) the direct organisation of
production in more than one Member State by a single economic
enterprise;(b) complementary production involving collaboration
among several economic enterprises operating in one or more
Member States to produce and use required inputs in the
production chain; and (c) co-operation among economic
enterprises in areas such as purchasing, marketing, and research
and development.
5
See Griffith M.D., Understanding the Caribbean Community and
Its Single Market and Economy: The Shaping of Its Legal and
Institutional Structures. Prepared for CaribInvest (West Indies)
Ltd., and is currently in the final stages of preparation. Due to be
published during the second quarter of 2009.
6
Griffith, M.D. and D. Oderson, the Strengthening of the Inner
Circle: The Case of the Caribbean Community. Prepared for
CaribInvest (West Indies) Ltd., CaribInvest (West Indies) Ltd,
February 2009.
4
a)
the effective management of the soil, air and all water
resources, the exclusive economic zone and all other
maritime areas under the national jurisdiction of the
Member States; and
b)
the conservation of biological diversity and the
sustainable use of biological resources of the Member
States, especially those of important medicinal and
traditional value.
7
Ibid.
See the CARICOM Secretariat, Conclusions of Twenty-Fifth
Special Session [Environment] of The Committee on Trade and
Economic Development (COTED), April 2008, Georgetown,
Guyana.
9
The CSME Zone is used to encompass those countries of the
Caribbean Community that are part of the CSME. These include
Antigua and Barbuda, Barbados, Belize, Dominica, Grenada,
Guyana, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and
the Grenadines, Trinidad and Tobago and Suriname.
10
OECD/Eurostat, OECD and the Statistical Office of the
European Communities, the Environmental Goods and Services
Industry: Manual for Data Collection and Analysis, 1999, OECD
Publication, Paris.
8
1
and pursuant to Article 65.RT, to promote measures
to ensure:
a)
the preservation, protection and improvement of the
quality of the environment;
b)
the protection of the life and health of humans, animals
and plants; and
c)
the adoption of initiatives at the Community level to
address regional environmental problems.
In addition, the Committee on Trade and Economic
Development (COTED) in the implementation of the
CIP is mandated, to have regard to the provisions of
the RT relating to environmental protection11.
Trade in environmental goods and services are an
integral part of the Caribbean Community production
integration framework. More specifically, trade in
environmental services is an essential part of the
mandate which Article 54.RT, imposes on the
Caribbean Community and its Member States. In
response to this mandate, the Caribbean Community
(CARICOM) Secretariat is convening a Regional
Symposium on Services to (a) Identify the elements
of a Draft Strategic Plan for Services in the
CARICOM Single Market and Economy (CSME)
and (b) Develop a Plan of Action for the five-year
period 2010–2014. It is for this purpose that this
concept paper was commissioned.
This paper is therefore prepared within the
parameters outlined by the Caribbean Community
Secretariat for the preparation of inputs into the
Regional Symposium on Services and is considered
as work in progress. It is considered within the
constituent legal framework for the Caribbean
Community, the RT, for which there is little
precedents to follow with respect to its interpretation
and application12. More importantly, it provides an
opportunity for the Member States to reflect on their
environmental stewardship and to decide on the role
environmental and natural resource management, has
and will continue to play in the future development of
the CSME Zone.
The purpose of this concept paper is to highlight
some of the key issues which have and continues to
impact on the evolution of the environmental service
sector in the CSME Zone. It also explores the factors
which could result in contributing to increasing the
demand for the provision of such services, both
within and outside of the CSME Zone. As a context,
it presents an overview of the international legal
framework for trade in services, of which
environmental services are a part. It also examines
the difficulties associated with the definition and
classification of environmental services, as well as
the various classification schemes being considered
by the international community, particularly, within
the context of the negotiations on trade in
environmental services taking place in the World
Trade Organisation (WTO).
More specifically, the concept paper provides an
overview of the scope and coverage of the
environmental services sector in the CSME Zone,
including the applicability of the various
classification schemes. In this regard, additional
classes of environmental services reflecting the
situation in the Small Island Developing States13
(SIDS) of the Caribbean Community are suggested
for inclusion in the existing classifications. It also
examines the creation of an enabling environment
which is conducive to the further development and
growth of the environmental service sector in the
CSME Zone.
In this regard, consideration is given to the regional,
legal and institutional, policy framework and its
implications for the development of the service sector
in the CSME Zone. Other issues which are addressed,
include, inter alia, financing and investing in the
environment and the implications of these for the
sector’s needs; incentives and institutional
requirements, in particular of Government and
industry, human resource requirements; access to and
use of technology; as well as the constraints to
achieving these; the opportunities for trade
agreements and for enhancing competitiveness within
and among sectors. A brief situational analysis of
what are the present and future anticipated
opportunities for the development of the sector in the
CSME Zone based on demand both regional and
global is presented as well as a number of
recommendations with respect to policy actions, data
gaps and legislative changes.
11
Article 51.5.RT
The first case to be adjudicated by the Caribbean Court of
Justice in its Original Jurisdiction is Trinidad Cement Limited and
TCL Guyana Incorporated v. The Co-operative Republic of
Guyana, Interim Order, CCJ Application No. AR 1 of 2008, [2008]
CCJ 1 (OJ)
12
13
SIDS as used in this document includes the Low-lying Coastal
States (LLCS)—Belize, Guyana and Suriname—of the Caribbean
Community.
2
2. INTERNATIONAL LEGAL FRAME-WORK FOR TRADE IN SERVICES, INCLUDING
ENVIRONMENTAL SERVICES
The General Agreement on Trade in Services
(GATS): It’s Relevance to Trade in Environmental
Services.
The principles and rules governing trade in
environmental services are contained in the World
Trade Organisation (WTO) discipline of the General
Agreement on Trade in Services (GATS). The GATS
came into force on January 01, 2005, and is the first
comprehensive, legally binding, international,
multilateral instrument covering trade in services.
The Service Sectoral Classification List forms the
basis for the consideration of trade in services in the
WTO. It contains twelve classes of services,
including environmental services14 (Annex 1).
The call by the Doha Ministerial Declaration for “the
reduction or, as appropriate, elimination of tariff and
non-tariff barriers to environmental goods and
services”15, signals the international community
commitment to the liberalisation of environmental
goods and services. Despite the synergies between
environmental goods and services, these are
addressed by separate negotiating forum in the WTO.
The former is addressed by the Negotiating Group on
Non-Agricultural Access (NAMA) and later by the
Special Session of the Council on Trade in Services.
A related instrument in the context of trade in
environmental services is the Ministerial Decision on
Trade in Services and the Environment. The
Ministerial Decision, while acknowledging that
measures necessary to protect the environment may
conflict with the provisions of the GATS; notes that
since measures necessary to protect the environment
typically have as their objective the protection of
human, animal or plant life or health, it is not clear
that there is a need to provide for more than is
contained in paragraph (b) of Article XIV of the
Agreement16. In order to determine whether any
modification of Article XIV of the Agreement is
required to take account of such measures, the
Committee on Trade and Environment is mandated to
examine and report, with recommendations if any, on
the relationship between services, trade and the
environment including the issue of sustainable
development17.
Under the GATS, commitments made by Member
States of the WTO cover those sectors and “modes of
supply” that are explicitly listed and subjected to
liberalisation in their schedules of commitments.
Three levels of commitments may be made by
Member States. Commitments that are full binding,
represents the full coverage of the sector and a
"none" entry against a particular mode of supply with
respect to both market access and national treatment,
denoting the absence of any limitations18.
Those which are designated "unbound" against the
relevant mode, with respect to both market access
and national treatment or with respect to market
access only are considered as no bindings19. The third
level of commitment are the intermediate case of
limited bindings, which refer to those entries which
are conditioned in some way by a limitation, which
may be on coverage (geographical, sectoral, or
modal), or in the form of a restrictive measures
(which can be one or more of the six types of
restrictions listed in Article XVI or any measure
inconsistent with the national treatment obligation in
Article XVII)20.
The modes of supply of services, pursuant to Article
1.2., of the GATS are:
a)
b)
c)
d)
Cross-border supply (Mode 1) from the territory of one
Member into the territory of any other Member;
Consumer Abroad (Mode 2) in the territory of one
Member to the service consumer of any other Member;
Commercial Presence (Mode 3) by a service supplier of
one Member, through commercial presence in the
territory of any other Member;
Presence of a Natural Person (Mode 4), by a service
supplier of one Member, through presence of natural
persons of a Member in the territory of any other
Member.
14
See World Trade Organisation (WTO), MTN.GNS/W/120,
Services Sectoral Classification List, Note By The Secretariat, 10
July 1991.
15
Paragraph 31(iii) of the Doha Ministerial Declaration. Adopted
on 14 November 2001 by the Ministerial Conference, Fourth
Session, Doha, 9 - 14 November 2001.
16
Decision on Trade in Services and the Environment
17
Ibid.
See World Trade Organisation (WTO), Environmental Services,
Background Note by the Secretariat, S/C/W/46, 6 July 1998 (982690).
19
Ibid.
20
Ibid.
18
3
Not all the modes are considered to be of equal
relevance to environmental services. Mode 1—crossborder
supply—and
Mode
2—consumption
abroad—are considered to be of limited relevance for
environmental services, even though there may be
scope for utilising these modes for certain support
services21. There are however differences between
Member States on the feasibility of Mode 1 in the
context of environmental services. A number of the
48 Member States which made commitments during
the Uruguay Round left Mode 1 “Unbound” for lack
of feasibility.
The issue of the feasibility of cross-border provision
of environmental services, and in particular the scope
of commitments under mode 1 was the subject of
consideration by an informal Group22. From those
discussions, it was concluded that the full
commitments for Mode 1 should, in principle, not
create problems in most areas of environmental
services. Whereas the provision of infrastructure
services such as waste management, or waste water
management, usually requires the physical presence
of the services supplier in the market; consultancy
related to such services (e.g. the design and
development of a waste management plan, consulting
on environmentally friendly solutions for waste water
disposal) can be supplied on a cross-border basis;
hence, it would seem that, for example., consultancy
in these sub-sectors can be committed for Mode 1.
However, since most environmental consultancy
services are closely linked with services supplied
under Mode 4, commitments for such consultancy
services supplied under Mode 1 should be
accompanied by a clear definition of environmental
consultancy services.
The GATS recognises - “the right of Members to
regulate, and to introduce new regulations, on the
supply of services within their territories in order to
meet national policy objectives and, given
asymmetries respect to the degree of development of
services regulations in different countries existing
with, the particular need of developing countries to
21
Ibid.
The Group comprised of the European Communities, Japan,
New Zealand, the Separate Customs Territory of Taiwan, Penghu,
Kinmen and Matsu and the United States and their Communication
circulated to the Members of the Council for Trade in Services on
dated 9 February 2005 in WTO, Communication from the
European Communities, Japan, New Zealand, the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Matsu and the
United States, TN/S/W/28, 11 February 2005, (05-0581).
22
exercise this right”23. However, the defining line as to
what constitutes those services which are
“…..supplied in the exercise of governmental
authority”, and are exempt from the Agreement and
those which are supplied “neither on a commercial
basis, nor in competition with one or more service
suppliers” is unclear. This results in some measure of
ambiguity with respect to the interpretation and
application of the Agreement.
In sectors where specific commitments are made by
Member States, pursuant to Article VI of the GATS,
it requires that each Member ensures that all
measures of general application affecting trade in
services are administered in a reasonable, objective
and impartial manner. However, pursuant to Article
VI.4 of the GATS, allowance is made for the
establishment and development of any necessary
disciplines to ensure that measures relating to
qualification requirements and procedures, technical
standards and licensing requirements do not
constitute unnecessary barriers to trade in services.
The objective Article XVI on the other hand is to
prohibit market access, as defined in Article XVI.2,
unless scheduled.
Measures that constitute market access limitations
within the meaning of Article XVI and which, unless
scheduled must be eliminated, are to be distinguished
from measures that impose qualification requirements
and procedures, technical standards and licensing
requirements, which can be maintained so long as
they do not constitute “unnecessary barriers to trade
in services”, pursuant to the criteria contained in
Article VI.5 or pursuant to the criteria to be
developed by the Council for Trade in Services
pursuant to Article VI.424.
The request-offer approach is the main method which
is used to negotiate new “specific commitments”.
This should take place, pursuant to Article XIX of the
GATS Agreement, with due respect for national
policy objectives and the level of development of
individual Members, both overall and in individual
sectors. It should also allow appropriate flexibility for
individual developing country Members for opening
fewer sectors, liberalising fewer types of transactions,
progressively extending market access in line with
their development situation and when making access
to their markets available to foreign service suppliers,
23
See Operative Paragraph 4 of the Preamble of the General
Agreement on Trade in Service.
24
World Trade Organisation, United States—Measures Affecting
the Cross-Border Supply of Gambling and Betting Services,
Report of the Panel, WT/DS285/R, 10 November 2004 (04-2687).
4
attaching to such access conditions aimed at
achieving the objectives contained in Article VI on
“Domestic Regulations”.
At the global level, impediments exit which
contribute to inhibiting the reduction or eliminating
existing restrictions on national treatment and market
access as well as on the broadening of commitments
by Member States. Including in these impediments
are those related to the lack of transparency of
regulatory
regimes
and
practices;
investment/establishment, entry and stay of services
managers, professionals and experts and licensing
requirements25. They also include limitations on the
type of legal entity required26, non-transparent
licensing procedures and unnecessary delays in
processing and informing applicants, restrictive
business practices and lax competition laws;
inconsistent
or
arbitrary
enforcement
of
environmental laws and planning restrictions;
discrimination against foreign companies27; tax
discrimination in favour of domestic firms;
limitations on foreign investment (e.g., limiting
equity to specific levels); and on the ownership of
specific assets (such as landfills and sewage
systems)28. The view29 has been expressed that the
cost of maintaining barriers in the environmental
service sector may not only have a significant impact
on costs and the variety of services provided, but act
as a disincentive for the global diffusion of
environmental technology, skills and expertise.
In terms of progress being made in the liberalisation
of environmental service the Chairman of the TNC
reported that there are indications of improvements
across the range of environmental services, including:
sewage services; sanitation services; refuse and solid
25
World Trade Organisation, Initial Negotiating Proposal on
Environmental Services, Communication From Canada, Council
for Trade in Services, S/CSS/W/51, 14 March 2001,(01-1407).
26
For example, restrictions on number and location of subsidiaries
and the requirement to incorporate locally.
27
For example, high registration fees for foreign companies and
lack of transparency in tendering processes.
28
World Trade Organisation, Negotiating Proposal for
Environmental Services, Communication From Australia, Council
for Trade in Services, Special Session, S/CSS/W/112, 1 October
waste disposal services; waste water management
services;
soil remediation and clean-up;
environmental laboratory services;
and other
services related to air pollution control and noise
abatement, as well as a willingness on the part of
several participants to expand the modal scope of
their commitments, and to reduce or eliminate
restrictions such as joint venture requirements and
foreign equity limitations30.
DEFINING ENVIRONMENTAL SERVICES
A major challenge in the consideration of trade in
environment goods and services is defining and
classifying, exactly what constitutes environmental
services. At the conceptual level, one can distinguish
between the various concepts of environmental
services. On the one hand, there are those services
which comprise of the human services to address
particular environmental and natural resources issues
(i.e. waste water treatment et al).
On the other hand, there are those environmental
services that are derived directly from the ecosystem
themselves (i.e. release of water from a healthy
watershed area), which have an economic value.
However, the concept of payment for environmental
services derived directly from the ecosystems,
themselves, is yet to be mainstreamed into economic
analysis. As this concept gains currency, a market for
these services is likely to be created. It is however,
the first concept of environmental services—trade in
environmental services—which is the prime focus of
this paper.
Defining and classifying environmental services are
not a straight forward task, but complicated by the
characteristics of environmental services, themselves.
Environmental services are by their very nature,
inter-sectoral; and hence overlap with other sectors.
Many environmental services therefore fall within
other GATS classifications sectors, which, for the
purpose of the Agreement, are all mutually exclusive.
In addition, the consumption of many environmental
services takes on the properties as “public goods”,
and is treated as externalities. The capital investment
required to deliver some environmental services in
the public interest, creates a unique role for the
involvement of the public sector in the provision of
some
environmental
services.
Furthermore,
2001, (01-4715).
30
29
World Trade Organisation, Initial Negotiating Proposal on
Environmental Services, Communication From Canada, Council
for Trade in Services, S/CSS/W/51, 14 March 2001,(01-1407).
Report By The Chairman Of The TNC, Services Signalling
Conference, JOB (08) 93, 30 July 2008.
5
environmental services are not a discrete set of
business activities. Instead, different issues (i.e.
hazardous waste, municipal waste, oil spills et al)
require the application of different technologies and
skills.
Existing Classifications
A number of classifications for trade in
environmental services exist. The classification
system most commonly used for the definition of
environmental services is the Service Sectoral
Classification developed during the Uruguay Round
(often referred to as the W/CPC classification). This
classification is based on the United Nations Central
Product Classification (Provisional CPC), and
classifies the environmental service sector as
comprising of four sectors. These include: (i) sewage
sector, (ii) refuse disposal services; (iii) sanitation
and similar services and (iv) other (cleaning services
for exhaust noise abatement services, natural and
landscape
protection
services,
and
other
environmental services not elsewhere classified),
with their corresponding CPC.
The W/120 CPC Classification is a rather limited
characterisation of environmental services which
places emphasis primarily on pollution abatement
technologies. It reflects the narrow, traditional notion
of environmental services, which focuses on facilities
that provide water and waste disposal treatment to the
general public, often by the public sector. It therefore
does not overlook the range of environmental
services which are provided to industry; nor does it
capture the changes which have taken place in the
environmental industry over the past decade and a
half and continues to take place.
A broader classification of the environmental
industry is that of the OECD and Eurostat (1999),
which characterized the industry into three main
sectors, namely pollution management, cleaner
technologies and products and natural resources
management. The OECD/Eurostat classification is
more comprehensive that that of the W/120 CPC
classification. Notwithstanding, suggestions have
been made for its amendment, particularly the
Resource Management cluster of the classification.
Lendo31 in defining environmental goods and
services in Mexico suggest the amendment of the
31
Lendo, Enrique, Defining Environmental Goods and Services:
A Case Study of Mexico. A Study Commissioned by the
Commission for Environmental Cooperation, ICTSD Project on
Environmental Goods and Services, Issue Paper No.1, October
2005, International Centre for Trade and Sustainable Development.
OECD classification in order to incorporate goods
and services with the potential to boost the
sustainable development impacts from EGS
liberalisation, particularly for Mexico.
The justification being that some countries could
have a comparative advantage in the production of
outputs from sustainable activities, such as
Environmentally Preferred Products (EPP)32. This
implies that the OECD/Eurostat categories
comprising primarily inputs into activities such as
sustainable agriculture and tourism will need to be
supplemented by outputs derived from these
activities (i.e. in the case of fisheries, sustainably
harvested fish).33
The United Nations Conference on Trade and
Development34 (UNCTAD) in its classification of
environmental services distinguish between three
broad classes of environmental services. First are
environmental infrastructure services, mainly related
to water and waste management. These services have
the characteristics of a “public good”, and are heavily
subsidised in many developing countries.
Secondly, are non-infrastructure, commercial
environmental services, comprising most of the
activities in Central Product Classification (CPC)
Division 94, for example site clean-up and
remediation, cleaning of exhaust gases, noise
abatement, and nature and landscape protection.
These are usually knowledge-intensive services, are
provided on an integrated basis and generally not
subject to market access and national treatment
limitations. Instead, issues such as technology access
and know how, capacity building, certification and
recognition of qualifications (for both natural persons
and companies), and "tied aid" as a restriction on
trade become important considerations. The third
category of environmental services distinguished by
UNCTAD is those related services with
environmental end-use, classified under different
divisions in the CPC, for example construction or
engineering services.
32
Ibid.
Ibid.
34
United Nations Conference on Trade and Development, Report
of The Expert Meeting On Definitions And Dimensions Of
Environmental Goods And Services In Trade And Development,
TRADE AND DEVELOPMENT BOARD Commission on Trade
in Goods and Services, and Commodities, Expert Meeting on
Definitions and Dimensions of Environmental Goods and Services
in Trade and Development Geneva, 9–11 July 2003 held at the
Palais des Nations, Geneva, from 9 to 11 July 2003.
TD/B/COM.1/59, D/B/COM.1/EM.21/3, 27 August 2003.
33
6
Efforts have been made within the WTO, particularly
by the Committee on Commitments to resolve the
issues associated with the classification of
environmental services and Member States have
made submissions, in this regard. The most
comprehensive submission, to date, has been made
by the Europe Communities and their Member
States35. A seven-part classification form the core
environmental services, including (i) water for human
use and waste water management; (2) solid and
hazardous waste management; (3) protection of
ambient air and climate; (4) noise and vibration
abatement; (6) remediation and cleanup of soil and
water; (6) protection of biodiversity and landscape
and (7) other environmental and ancillary services.
The seven-point proposal by the EC and its Member
States corresponds more or less to the
OECD/Eurostat classification. The first class— water
for human use and waste water management—of the
EC classification addresses the entire water cycle. It
also introduces the protection of biodiversity and
landscape. Table 2.1 provides a comparison of the
W/20; the OECD/Eurostat and the EC classifications.
The EC and its Member States36 also propose a
cluster approach to some environmental services:
Environmental Services which could be subject to
“Cluster” negotiations. Categories which were
highlighted include business services–research and
development–,
consulting,
contraction
and
engineering–; distribution–; transportation–, and
other with environment components.
Though the consensus is that the EC and its Member
States proposed classification forms a useful working
basis for the negotiations, differences still exist. For
example, Colombia proposes that the services: the
implementation and auditing of environmental
management systems; the evaluation and mitigation
of environmental impact, and advice in the design
and implementation of clean technologies37 be
included in the classification.
35
WTO, Classification Issues in the Environmental Sector,
Communications from the European Communities and their
Member States, Committee on Specific Commitment,
S/CSC/W/25, 28 September 1999, (99-4001). The original list was
subsequent amended by S/CSS/W/38.
36
WTO, Classification Issues in the Environmental Sector,
Communication from the European Communities and their
Member States, Committee on Specific Commitment,
S/CSC/W/25, 28 September 1999, (99-4001).
37
WTO, Environmental Services, Communication from
Colombia, S/CSS/W/121, 27 November 2001, (01-6059).
Using the EC classification as a basis, a Group38, on
the basis of informal discussion of proposals for a
revision of the classification of environmental
services, concluded that revisions of the proposed EC
classification proposal were necessary to improve its
clarity and consistency. One of the issues raised
related to the definition of 'consulting services', as
alluded to before. In this regard, it was considered
that a clear definition of consulting services might be
required in order to include such services in certain
sub-sectors of environmental services. It would be
logical that consultancy services in an area of
environmental services (e.g. waste management
solutions) may form part of that particular
environmental services sub-sector. If not, it would be
unclear where such services would be classified.
Another question raised by the Group relates to
potential overlaps of environmental services with
services such as research and development, technical
analysis services, engineering, etc., which are
classified elsewhere in GATS. Even though such
services can have an environmental "end-use", the
group did not consider it necessary to create a
specific sub-category for these services in a revised
classification of environmental services. They
concluded that what is important is that any
commitments cover the environment-related activity
in the relevant service sectors in addition to 'core'
environmental services, and that commitments are
consistent across these sectors.
A consensual, definitive classification system for
trade environmental services does not exist at the
international level. However, given the non-binding
nature of the scheduling guidelines, Member States
are not obligated to use any one classification and are
free to use any they prefer or develop one of their
own. If any activity considered to be part of a new
environmental service category is already part of
another service sector, then it would need to be
excluded from the sector where it currently resides to
preserve the mutually-exclusive nature of the
classification39.
38
The Group comprised of the European Communities, Japan,
New Zealand, the Separate Customs Territory of Taiwan, Penghu,
Kinmen and Matsu and the United States and their Communication
circulated to the Members of the Council for Trade in Services on
dated 9 February 2005 in WTO, Communication from the
European Communities, Japan, New Zealand, the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Matsu and the
United States, TN/S/W/28, 11 February 2005, (05-0581).
39
See World Trade Organisation (WTO), Environmental Services,
Background Note by the Secretariat, S/C/W/46, 6 July 1998 (982690).
7
The search for a common classification for trade in
environmental services is further complicated by the
increasing urgency on the part of the international
community to find solutions for addressing climate
change. This has given expediency to accelerating
liberalisation on trade in low-carbon goods and
service, an issue which currently does not fall within
the remit of the WTO. Some of the key challenges, in
this regard, include, inter alia, defining what
constitutes low-carbon goods and services; the need
for further research on various aspects of the issue
and the implications of the ongoing negotiations
within the WTO on the liberalisation of
environmental goods and services.
Though the liberalisation of low-carbon goods and
services is not the necessarily the same as
environmental goods and services, there are close
enough, that no low- carbon effort could conceivably
be launched until there is some resolution of the
WTO process40. It is therefore important that progress
is made in the WTO on the liberalisation of trade in
environmental services, in particular, in defining and
classifying them in such a manner that broadens the
scope to include the concerns of developing
countries. This is a discussion which the Member
States of the CSME Zone must take a more active
role in.
40
See the Summary Notes: Copenhagen Seminar on Trade and
Climate Change, Session on Accelerating Liberalisation of Trade
in Low-Carbon Goods and Services, June 18-20, 2008.
8
Table 2.1: Environmental Services: A Preliminary Comparison between the MTN.GNS/W/120 Classification, the Management Group of the OECD/EUROSTAT Classification and the
Adjustments Proposed by the European Communities and their Member States to the MTN.GNS/W/120 Classification, S/CSC/W/25 as amended by S/CSS/W/38, 22 December 2000
MTN.GNS/W/120 CLASSIFICATION (WITH THE "OTHER"
CATEGORY ELABORATED USING THE CPC)
A. Sewage services (CPC 9401)
Sewage removal, treatment and disposal services
Excludes collection, purification and distribution services of water
(in CPC 18000)
OECD/EUROSTAT MANUAL CLASSIFICATIONS
POLLUTION MANAGEMENT GROUP
Waste water management
Design, operation of systems or provision of other services
for the collection, treatment and transport of waste water and
cooling water. It includes design, management or other
services for sewage treatment systems, waste water reuse
systems, water handling systems
Excludes construction, repair and alteration of sewers (in CPC
51330) (GATS 3B civil engineering construction services)
B. Refuse disposal services (CPC 9402)
C. Sanitation & similar services (CPC 9403)
Refuse disposal services:
Refuse collection and disposal services; collection services of
garbage, trash rubbish and waste (household, commercial and
industrial); transport services and disposal services; waste
reduction services.
Excludes dealing and wholesale in waste and scrap (in CPC 62118
and 62278; GATS 4 distribution services)
Excludes R&D services on environment issues (CPC 85; GATS
1C Business services (R&D))
Sanitation and similar services:
Sanitation and similar services including outdoor sweeping, snow
and ice clearing.
Excludes disinfecting/exterminating services for buildings (in CPC
87401; GATS (1F)(o) – Other Business Building Cleaning
Services.)
Excludes pest control for agriculture (CPC 88110; GATS 1F(f)
services incidental to agriculture, hunting and forestry.
D. Other services
Cleaning services of exhaust gases (CPC 9404)
Emission monitoring and control services of pollutants into the air,
whether from mobile or stationary sources; concentration
COMMUNICATION FROM THE EUROPEAN
COMMUNITIES AND THEIR MEMBER STATES
Water For Human Use and Wastewater Management
Water collection, purification and distribution services
through mains, except steam and hot water
- potable water treatment, purification and distribution
including monitoring [part of 18000, 69210, 86223, part of
94900]
Waste Water Services
Solid waste management
Design, operation of systems or provision of other services
for the collection, treatment, management, transport, storage
and recovery of hazardous and non-hazardous solid waste.
It includes design, management or other services for waste
handling (including collection of waste and scrap), operation
of recycling plants. It includes services for outdoor
sweeping and watering of streets, paths, parking lots, etc.
Services for treatment of low level nuclear waste are
included.
Excludes high level nuclear waste.
Excludes services for manufacture of new materials or
products from recovered waste or scrap and subsequent use
of these materials or products.
Air pollution control
Design, managing systems or providing other services for
treatment and/or removal of exhaust gases and particulate
- removal, treatment and disposal of household, commercial
and industrial sewage and other waste waters including tank
emptying & cleaning, monitoring, removal and treatment of
solid wastes [9401, 94010, 9411, 94110, 94120]
Solid/Hazardous Waste Management
Refuse disposal services
- hazardous and non-hazardous waste collection, treatment
and disposal (incineration, composting, landfill) [94020,
94211, 94212, 94221, 94222]
Sanitation and similar services
- sweeping & snow removal [94030]
- other sanitation services [94310, 94390]
Protection Of Ambient Air And Climate
Services to reduce exhaust gases and other emissions and
9
MTN.GNS/W/120 CLASSIFICATION (WITH THE "OTHER"
CATEGORY ELABORATED USING THE CPC)
monitoring, control and reduction services of pollutants in ambient
air.
OECD/EUROSTAT MANUAL CLASSIFICATIONS
POLLUTION MANAGEMENT GROUP
matter from both stationary and mobile sources
COMMUNICATION FROM THE EUROPEAN
COMMUNITIES AND THEIR MEMBER STATES
improve air quality [94040, part of 94900]
- services at power stations or industrial complexes to
remove air pollutants
Noise abatements services (CPC 9405)
Noise pollution monitoring, control and abatement services, e.g.
traffic-related noise abatement in urban areas.
Noise and vibration abatement
Design, managing systems or providing other services to
reduce or eliminate the emission of noise and vibration both
at source and dispersed. Includes designing, management or
other services for acoustic and sound-proof screens and
street covering.
Remediation and cleanup of soil, surface water and
groundwater.
Other environmental protection services n.e.c. (CPC 9409)
Design, operation of systems or provision of other services
to reduce the quantity of polluting materials in soil and
water, including surface water, groundwater and sea water.
Includes cleaning-up systems either in situ or in appropriate
installations, emergency response and spills cleanup
systems. Treatment of water and dredging residues are
included.
E.g. acidifying deposition ("acid rain"), monitoring, controlling
and damage assessment services
Analytical services, data collection, analysis and
assessment
[Business Services – R&D natural sciences and engineering;
CPC 85] as well as
Environmental Services – Other Services, CPC 9406, 9409
- monitoring of mobile emissions and implementation of
control systems or reduction programmes.
Noise and Vibration Abatement
Noise abatement services
- monitoring programmes, installation of noise reduction
systems and screens [94050, part of 94900]
Remediation And Cleanup Of Soil and Water
Treatment, remediation of contaminated/polluted soil and
water
- cleaning-up systems in situ or mobile, emergency response,
clean-up and longer term abatement from spills and natural
disasters
- rehabilitation programmes (e.g. recovery of mining sites)
including monitoring [part of 94060, part of 94900]
Design, manage systems or provision of other services to
sample, measure, and record various characteristics of
environmental media. Includes monitoring sites, both
operating singly and in networks, and covering one or more
environmental medium. Health, safety, toxicology studies,
and analytical laboratory services are included. Weather
stations are excluded.
Environmental R&D
Any systematic and creative activity which is concerned
with the generation, advancement, dissemination and
application of scientific and technological knowledge to
reduce or eliminate emissions in all environmental media
and to improve environmental quality. Includes creative
scientific and technological activities for the development of
cleaner products, processes and technologies. It includes
non-technological research to improve knowledge of eco-
10
MTN.GNS/W/120 CLASSIFICATION (WITH THE "OTHER"
CATEGORY ELABORATED USING THE CPC)
[Construction and related engineering services (CPC 51330)]
Other environmental protection services, CPC 9409; possibly
also [5 – Educational Services – Other]
OECD/EUROSTAT MANUAL CLASSIFICATIONS
POLLUTION MANAGEMENT GROUP
systems and the impact of human activities on the
environment.
Services related to activities for the construction and
installation of facilities for: air pollution control; waste
water management; solid waste management; remediation
and cleanup of soil, water and groundwater; noise and
vibration abatement; environmental monitoring; analysis
and assessment; other environmental facilities.
Education, training, information
COMMUNICATION FROM THE EUROPEAN
COMMUNITIES AND THEIR MEMBER STATES
Provision of environmental education or training or
dissemination of environmental information and which is
executed by specialised institutions or specialised suppliers.
Includes education, training, and information management
for the general public, and specific environmental work
place education and training. The activities of the general
educational system are excluded.
2. CLEANER TECHNOLOGY AND PRODUCTS
GROUP
Cleaner/resource efficient technologies and processes:
Cleaner and resource efficient technologies decrease
material inputs, reduce energy consumption, recover
valuable byproducts, reduce emissions, minimise waste
disposal problems, or some combination of these.
Cleaner/resource efficient products: Cleaner or resource
efficient products decrease material inputs, improve product
quality, reduce energy consumption, minimise waste
disposal problems, reduce emission during use, or some
combination of these.
3. RESOURCE MANAGEMENT GROUP
Potable water treatment and distribution : any activity
that produces equipment, technology or specific materials,
designs, constructs or installs, manages or provides other
services for water supply and delivery systems, both
publicly and privately owned. It includes any activities
aiming to collect, purify and distribute potable water to
household, industrial, commercial or other users.
Recycled materials: This class includes any activity that
produces equipment, technology or specific materials,
designs, constructs or installs, manages or provides other
services for manufacturing new materials or products,
separately identified as recycled, from recovered waste or
scrap, or preparation of such materials or products for
subsequent use.
11
MTN.GNS/W/120 CLASSIFICATION (WITH THE "OTHER"
CATEGORY ELABORATED USING THE CPC)
Nature and landscape protection services (CPC 9406)
Ecological system protection services, e.g. of lakes, coastlines and
coastal waters, dry land, etc. including their respective fauna, flora
and habitats.
OECD/EUROSTAT MANUAL CLASSIFICATIONS
POLLUTION MANAGEMENT GROUP
COMMUNICATION FROM THE EUROPEAN
COMMUNITIES AND THEIR MEMBER STATES
Renewable energy plant : This class includes any activity
that produces equipment, technology or specific materials,
designs, constructs or installs, manages or provides other
services for the generation, collection or transmission of
energy from renewable sources, including biomass, solar,
wind, tidal, or geothermal sources.
Protection Of Biodiversity And Landscape: Nature and
landscape protection services
Nature Protection: activities to conserve or maintain the
natural environment.
- ecology and habitat protection
- protection of forests and promoting sustainable forestry
[part of 94060, part of 94900]
Services consisting in studies on the interrelationship between
environment and climate (e.g. greenhouse effect), including
natural disaster assessment and abatement services. Landscape
protection services n.e.c.
Excludes forest and damage assessment and abatement services (in
CPC 881, GATS 1F(f). Services incidental to agriculture, hunting
and foresting)
Other Environmental & Ancillary Services
Other services not classified elsewhere
- other environmental protection services [part of 94090]
- services related to environmental impact assessment [part
of 94900]
SOURCE: World Trade Organisation (WTO), Environmental Services, Background Note by the Secretariat, S/C/W/46, 6 July 1998 (98-2690) and World Trade Organisation, GATS 2000:
Environmental Services, Communication from the European Union and their Member States, Council of Trade in Services, S/CSS/W/38, and 22 December 2000, (00-5633).
Note: Items in square brackets belong to sectors other than environmental services in the MTN.GNS/W/120 classification
12
3. SCOPE AND NATURE OF THE ENVIRONMENTAL SERVICE SECTOR IN THE CSME ZONE
Definition and Classification of Environmental
Services in the CSME Zone
honour
obligations
under
the
Multilateral
Environment Agreements (MEAs); and that of
The definition and classification of the environmental
service sector in the countries of the CSME Zone,
present similar challenges to those experienced at the
global level. There is no common classification for
environmental goods and services in the CSME
Zone. In the absence of a common definition on trade
in environmental services in the CSME Zone,
consideration is given to the applicability of the
various classifications, in particular, the W/120 CPC;
the OECD/Eurostat and EC classifications to the
situation in the CSME Zone.
Natural Hazard Risk Assessment and Management,
reflects the Region’s vulnerability to natural disasters
and the need plan for any eventuality. The
To better reflect the reality in the CSME Zone, a
classification scheme (Table 3.1) is devised, drawing,
as necessary, on the existing classification. The
proposed classification scheme for the CSME Zone
comprise of four main clusters:
Pollution
Management Group, which corresponds more or less
to
existing
classification;
Information
Knowledge/Capacity Enhancement Services and
Cleaner Technology and Production Groups,
respectively, which correspond to elements of the
OECD/Eurostat classification and the Resource
Management
Group.
The
Information
Knowledge/Capacity Enhancement Services Group is
consistent with Article 54.3. (b).RT which establishes
as a priority in the development of the service sector
for the Community, the development of capacityenhancing services, including education, research and
development services.
It is in the Resource Management Group cluster
where most of the additions have been made. Coastal
and Marine Protection and Management are added to
reflect the importance of the coastal and marine
environments to the Member States of the Caribbean
Community. This class encompasses the range of
measures taken for the protection and conservation of
the marine environment and enforcement. The
Protection and Management of Natural and Cultural
Heritage are also included as a specific class to
reflect the need for the protection of the Region’s
natural and cultural heritage. The activities in this
class also support the eco-tourism and heritage
tourism efforts in the CSME Zone.
The class on Environmental Planning encompasses
the whole gambit of environmental policy measures,
including, inter alia, EIAs, services required to
Table 3.1. CLASSIFICATION OF
ENVIRONMENTALSERVICES IN THE CSME
ZONE
POLLUTION MANAGEMENT GROUP
Solid/Hazardous Waste
Management
Recycled Materials
Waste Water Management
Air Pollution Control
Noise and Vibration Abatement
Remediation and Cleanup of Soils, Surface Water
or Ground Water
INFORMATION KNOWLEDGE/CAPACITY
ENHANCEMENT SERVICES GROUP
Analytical Services, Data Collection, Analysis and
Assessment
Environmental
Research and Development
Environmental Education, Training and
Information
CLEANER TECHNOLOGY AND PRODUCTION
GROUP
Cleaner/Resource Efficient Technologies and
Process
Cleaner/Resource Efficient Products
RESOURCE MANAGEMENT GROUP
Renewable Energy
Water Resources Treatment and Distribution
Sustainable Biodiversity
Coastal and Marine Protection and Management
Protection and Management of Natural and
Cultural Heritage
Environmental Planning
Natural Hazard Risk Assessment and Management
Sustainable Land Management
Sustainable Forestry Management
Other Environmental Services
Sustainable Land and Forest Management, classes,
respectively, reflect the importance of these assets to
the socio-economic development of the Community.
The products and services which are derived from
Non-Timber Forest Product (NTFP) are included in
the Sustainable Forest sub-group.
Paucity of Data and Information
One of the constraints experienced in addressing
trade in environmental services in the CSME Zone, is
the paucity of information and data on the sector. The
13
situation with respect to the availability of data and
information on the environmental industry in
Barbados exemplifies this constraint: “…there is a
dearth of hard data in relation to the environment
industry in Barbados. This was particularly so in the
area of environmental services. There is no
systematic record of environmental services required
locally, produced locally or imported”41. The
Barbados situation exemplifies the situation
throughout the CSME Zone. There is therefore a
need for the systematic collection of data on
environmental industry in the CSME Zone. This
should form part of the modernisation process for the
collection of statistics within the CSME Zone and
probably form the basis for the establishment of a
CariStat for the Caribbean Community.
To address data constraint an on-line perception
survey42
is designed to gather more specific
information and data on the environmental service
sector in the CSME Zone. The survey instrument
covers a wide cross section of issues including, inter
alia, the classification of environmental services in
the CSME; the nature and scope of the sector; factors
necessary for the creation of an enabling environment
for the expansion of the sector; Government
expenditure on environmental services and
procurement procedures.
Two main groups are targeted by the survey; the
Member States through their Environmental Focal
Point—the Ministry with responsibility for the
Environment—copied to the Trade Policy Focal
Points and the providers of environmental services
particularly in Barbados, Guyana, Jamaica and
Trinidad and Tobago. Using the classification in
Table 3.1., as a guide, a search was undertaken using
available information, particularly the telephone
classifications to identify the enterprises in the CSME
Zone that are listed as providing environmental
services. The service providers were contacted inorder to ascertain their e-mail addresses. Only those
enterprises which provided their e-mail addresses
were included in the survey. The survey was
conducted during the latter part of January and
February, 2009.
The Structure of the Environmental Service Sector
in the CSME
The environmental service sector has not evolved in a
uniform manner in the CSME Zone, either by sectors
or in individual Member States. The structure of the
environmental service sector in the CSME Zone
consists of public and private service providers as
well as by civil society organisations. There is a close
link between environmental goods and the provision
of environmental services in the CSME Zone. In this
regard, the provision of some environmental goods
(i.e. the market penetration of solar water heater in
Barbados) creates opportunities for environmental
service.
At the Caribbean Community level, a number of the
Caribbean Community organisations have been
established within the framework of functional cooperation to provide specific environmental services.
These include the Caribbean Environmental Health
Institute (CEHI) in the area of environmental health
services; Caribbean Disaster Emergency Response
Agency (CDERA) recently renamed CDEMA for
disaster management and response; the Caribbean
Community Climate Change Centre (CCCCC) for
climate change and the Caribbean Regional
Organisation for Standards and Quality (CROSQ) for
standards.
Pollution Management Group
Public sector participation is dominant in the
traditional areas such as the provision of water and
solid and liquid waste treatment and disposal
facilities. These are areas which require large capital
investments and are provided for the “public good”.
The provision of environmental services–solid waste
collection and disposal; water and waste water
management–requiring large capital investments are
provided by the statutory public sector entities, such
as Water and Sewage Authority (WASA) in Trinidad
and Tobago and the Barbados Water Authority in
Barbados in the case of water and waste water
management. In solid waste management, the
Trinidad and Tobago Solid Waste Management
Company is one such example.
41
Whitehead, J, Research Report Study, Benefiting for Trade
Liberalisation in Environmental Goods and Services: Identifying
the Possibilities. Prepared for the Ministry of Energy and the
Environment, Government of Barbados through the National SubCommittee on Trade and Environment, September 2007.
42
To gain access to the Survey, go to the CaribInvest (West
Indies) Limited Website at www.caribinvestwiltd.com, go to
Current and Up-Coming Initiatives and click on Survey on
Environmental Services in the CSME. A subsequent publication
will follow with a more detailed analysis of the Survey results.
In respect to both solid waste and liquid waste
disposal and management, a distinction can be made
between the environmental services which are
provided to the domestic economy and those which
are provided to customers at the port of entry. This
distinction is important, given that the Caribbean has
one of the world’s highest densities of ocean cruise
14
and therefore has the potential for the generation of
large volumes of both liquid and solid wastes, which
if not disposed of in a responsible manner, can create
environmental problems. As an example, it is
estimated that the Caribbean in 2000, had 21,510,
142 cruise bed days, generating in excess of 75
metric tons of waste43. This compares to 6,277,064
bed days in the Mediterranean generating close to 22
metric tons of waste for the corresponding year44.
Though the Caribbean Sea has been accorded the
status of Special Area in 1993 under Annex V of the
MARPOL 73/78 Convention, with respect to the
prevention of pollution of the sea by garbage, is has
not yet come into effect because of lack of
notifications from MARPOL Parties whose coastlines
border the Caribbean Sea on the existence of
adequate reception facilities, pursuant to Regulations
38.6 of MARPOL Annex I and 5. (4) Of MARPOL
Annex V. Similarly in the area of waste water
management adequate waste water treatment
facilities at the ports throughout the CSME Zone are
non existent. To create a funding mechanism as well
as an
economic incentives for both the port
authorities to provide waste reception facilities and
for shipping operators to offload waste onshore, the
the GIWA-Regional Assessment,45 has recommended
the issuing of the “cruise line seasonal passport”46
(CCP).
In most Member States, more specialised solid and
liquid waste management and disposal services are
provided by the private sector. These are carried out
mainly by small or medium-sized firms. The services
include, inter alia, solid waste management and
disposal services; water and sewerage treatment and
disposal; recycling and E-waste management, waste
water and waste oil removal and disposal services.
43
IMO estimates that each tourist generates about 3.5 kilos of
waste per day. Waste generation for cruise ships is usually
calculated by bed days. See Ocean Conservancy (2002) Cruise
Control: A Report on How Cruise Ships Affect the Marine
Environment. The Ocean Conservancy 68.
44
Ibid.
45
Villasol, A. and J. Beltran. Global International Waters
Assessment, Regional Assessment 4, Caribbean Islands, Bahamas,
Cuba, Dominican Republic, Haiti, Jamaica, Puerto Rico. UNEP,
GEF, KALMAR, CIMAB. Published by the University of Kalmar
on behalf of UNEP, 2004
46
This would be sold at the beginning of the season and would
allow access to a number of installations and harbor hosted
facilities, including treatment of their waste. This passport would
allow the ports to receive income at the beginning of the season
and therefore reduce the risk posed by the stability of international
politics on the volume of tourists in the region-thus shifting the
level of risk factor from the port authorities to cruise ship
operators.
In addition, some Member States of the Caribbean
Community have not invested in large scale sewage
systems; such facilities are therefore non-existent in
those countries, other than the facilities provided by
private service providers. However, the proposed
establishment of the Caribbean Revolving Fund for
Wastewater Management (CReW), by of the IDB and
UNEP should create an incentive for Member States
of the Community to invest in waste water treatment
and disposal systems. The long-term goal of the
CReW is to reduce pollution discharges in the coastal
waters of the Caribbean Basin through the removal of
financial, technical and institutional barriers, in the
framework of advancing towards the fulfilment of the
obligations of the Cartagena Convention and its
Protocols47. In this regard, the project will pilot
revolving
financial
mechanisms
that
can
subsequently be established as feasible instruments to
provide sustainable financing for the implementation
of environmentally sound and cost-effective
wastewater management measures48.
Notwithstanding the dominance of the public sector
in these services, given the technological
requirements of large infrastructural projects, most of
the technical expertise to establish these facilities is
recruited from abroad. In addition, a substantial
amount of the resources for the construction of such
facilities are usually source by way of loans from the
international financial institutions.
Though not grouped in the Pollution Management
Group, the water resources treatment and
management is considered here because of its
association with waste water treatment. Like in the
case of both solid and liquid waste management, the
public sector plays a very important and critical role
in providing environmental services in this area.
There is also an increasing role for the private sector
with respect to the provision of services for the
treatment of water for general distribution. This trend
is likely to increase particularly in the water scarcity
countries in the CSME Zone.
The increasing water scarcity in some Member States
of the Community has created opportunities for the
provision of water form desalination water. This is a
growing trend which is likely to continue in the
Community, as Member States grapple not only with
the provision of adequate sources for domestic and
industrial uses, by also for the increasing tourist
population. The approach to the provision of
47
See the GEF Project Document entitled Testing a Prototype
Caribbean Regional Fund for Wastewater Management (CReW)
48
Ibid.
15
desalination water varies from country. In the case of
Antigua and Barbuda one desalination plant which is
owned, operated and maintained by ENERSERVE
(Veolia Water Company), a private sector entity,
supplies approximately 60 to 75 percent of Antigua's
drinking water49. In the case of Barbados the
desalination plant is owned and operated by the
Barbados Water Authority. The quality of the water
resources in some Member States provide the basis
for a water based industry, comprising of purified
bottled water; the sale of water to cruise ships as well
as the export of water, in the case of Dominica, as a
commodity.
A key question which arises is if there is a need for a
radical change in the ownership structure, particularly
of
private
participation
in
environmental
infrastructure services in the CSME Zone. This can
be achieved by different means, including through
full privatisation; the issuing of service contracts to
perform specific tasks; build operate transfer (BOT)
in which the facility is built and operated by the
private sector for a specific period of time (i.e.10-20
years) to be able to recover the cost of the investment
or built operate own (BOO) on the basis of a long
term concession contract (i.e. 25 years) or joint
venture arrangements.
Depending on the nature of the environmental
infrastructural service in question, a case could be
made for any of these management arrangements.
However, the most controversial is likely to be full
privatisation. The best example in the CSME Zone of
the privatisation of an environmental infrastructural
service is the privatisation of the water resources
sector in Belize; an experience, which is classified as
a failed water privatisation effort.
Information Knowledge/Capacity Enhancement
Group
The provision of environmental services in this
Group is provided by a number of actors, including,
inter alia, by the public sector; non-state actors, in
particular NGOs, Universities in particular to formal
training and research and technical institutes and
field stations. Some of the institutes and field stations
are private facilities such as the Belize Foundation
for Research and Environmental Education (BFREE)
whose activities focus mainly on research,
management and environmental education and
49
US Army Corps of Engineers, Mobile District and Topographic
Engineering Center, Water Resources Assessment of Dominica,
Antigua, Barbuda, St. Kitts and Nevis, December 2004.
outreach50 or are run by Non-For Profit Organisations
as in the case of the Blackbird-Oceanic Society Field
Station in Belize. The Oceanic Society's primary
mission is to protect endangered wildlife and
preserve threatened marine habitats worldwide. The
Society works to establish protected natural areas,
supported and sustained through scientific research,
in cooperation with local communities51.
In Guyana, the Iworkama Rain Forest Programme
provides a living laboratory for the study, research
and application of sustainable tropical forests
management principles. The Iworkama Rain Forest
Programme established following an offer made by
His Excellency Desmond Hoyte, President of
Guyana, to the international community of one
million acres of Guyana pristine rainforest to test and
develop tools and methodologies for the management
of tropical rainforests and spearheaded by the
Commonwealth Secretariat.Formal professional
training in environment is provided by the
Community’s Universities, whereas public education
and training is provided, primarily by NGO and the
public sector. There are however a number of private
sector entities which specialised in environmental
education.
Cleaner Technology and Production Group
The provision of environmental services in this
Group is evolving in the CSME. The main effort to
create greater awareness the activities taking place
under the auspices of UNEP, as part of the global
process—the Marrakech Process—aimed at
the
elaboration of a 10-Year Framework of Programme
on sustainable consumption and production52.The
First Sub-Regional Meeting on Sustainable
Consumption and Production for the Caribbean and
Latin America53 held in Trinidad and Tobago in
August 2008, should provide further impetus to
creating greater awareness among Member States of
the Caribbean Community to undertake efforts to
green their economies; enterprises to develop greener
business models and encourage consumers to adopt
more sustainable lifestyles.
50
See www.freebelize.net
See www.oceansociety.org for more information.
52
This process is called for by the WSSD Johannesburg Plan of
Action. Its goals are to: (a) assist countries in their efforts to green
their economies; (b) help corporations develop greener business
models and (c) encourage consumers to adopt more sustainable
lifestyles.
53
For more specific information on the Workshop See The Report
of the First Sub-Regional Meeting On Sustainable Consumption
and Production For The Caribbean and Latin America, Trinidad
and Tobago, 13-14 August 2008, UNEP/ROLAC.
51
16
Resource Management Group
In addition to potable water treatment and
distribution, this Group includes renewable energy
and a set of knowledge intensive services which are
orientated towards the protection and enhancement of
the environmental and natural resource base of the
CSME Zone. In the case of renewable energy,
environmental services are provided in support of the
increasing use of clean energy products such as solar.
This is being fuelled by the search for cheaper and
green sources of energy.
Solar energy uses in the CSME Zone is expanding
beyond solar water heaters to areas such as the
provision of lighting for offshore oil platforms. In
addition to solar, other forms of clean energy such
are as hydro, geothermal and wind are available in
the CSME Zone. In the case of hydro, Dominica
produces about forty percent of its energy from
hydro. In the case of geothermal, the commencement
of production of geothermal energy in Nevis during
2008, will serve as an incentive for the region to
seriously focus on developing its potential in this
area.
Over the past decade and a half or so years, the
provision of environmental and natural resources
consultancy services has increase in importance.
These services are usually provided by small and
medium sized, highly specialized entities and
professions. A number of factors may be attributed
to this growth. Firstly, the increase interest which
resulted from the convening of the United Nations
Conference in Environment and Development
(UNCED) in 1992 and the First United Nations
Conference on the Sustainable Development of Small
Island Developing States (SIDS) in April/May in
1994, created greater awareness of the importance of
environment to national and regional development.
The increase awareness has also been influence
significantly by the work and activities of non-state
actors,
particularly
the
Non-Governmental
Organisations, both at the national and regional
levels.
The impact of the UNCED on the provision of
environmental goods and services in the CSME
Zone, is probably best illustrated by an innovated54
private sector initiative— Liana Cane—in Guyana.
Formed in 1994 to contribute the conservation of and
the sustainable use of Guyana forest resources, value
54
See Griffith. M. D. The Caribbean, Discover the Region, Its
Assets and Investment Opportunities, Prepared for CaribInvest
(West Indies) Ltd., CaribInvest (West Indies) Ltd., March 2007.
added environmental goods in the form of sustainable
furniture and other household fittings are produced
from renewable forest products.
These products are produced namely from liana, a
woody forest vine that attaches themselves to the
towering tree canopies while their roots and multiple
offshoots drop down to the forest floor as well as
form the kufu (clausia spp) and nibbi vines
(heteropsis flexusoa). The latter is a small vine which
grows from the forest floor up to the trunk of the
trees and a fibre of the palm which is made by
women into a twine called tibisiri (mauritana
flexusoa). These raw materials are harvested in a
sustainable manner to ensure their regeneration, with
the participation of the indigenous peoples and local
communities in the harvesting areas, thereby
providing an economic incentive for them to
sustainable utilise forest. This eco-innovation has the
potential to form the basis of an industry based on
NTFP in the Caribbean Community.
Secondly, the strengthening of the legal framework
for environmental management in individual Member
States has created a demand for environmental
services. In Barbados the emphasis by the
Government of Barbados on Coastal Zone
Management and the securing of loans on the
international financial market for this purpose has
created a demand for coastal and marine
environmental services. In Trinidad and Tobago the
enactment of the Environmental Management Act
which established the requirement for Environmental
Impact Assessment (EIA) has created a demand for
environmental services. A similar situation exists in
Jamaica.
Also contributing to the creation of demand for the
provision of environmental serves in the CSME
Zone, is the support required by Member States to
honour their obligations under the various
Multilateral Environment Agreements (MEA) to
which they are Party. Since the late 1980’s the
Member States of the Caribbean Community have
signed and ratified a number of Multilateral
Environment Agreement (MEA). The ratification of
MEAs along with the technical assistance provided
from multi- and bi-lateral sources have been
contributing factors in creating the demand for the
provision of environmental service. These have
resulted in a net inflow of resources to the
environmental sector, which in turn have contributed
to creating a demand for the provision of
environmental services. Table 3.1 gives an indication
of this inflow. Between 1994 and January of 2009,
approved GEF project grants for national projects in
17
the Member States of the Caribbean Community
stood at over 50m.
Table 3.1: Value of Approved GEF Project for the
Member States of the Caribbean Community 1994200955 in USD (millions)
Country
Antigua and
Barbuda
The
Bahamas
Barbados
Belize
Dominica
Grenada
Guyana
Haiti
Jamaica
St. Kitts and
Nevis
St. Lucia
St, Vincent
and the
Grenadines
Suriname
Trinidad
and Tobago
Total
Approved
National
Projects
Participation
In Approved
Regional
And Global
Projects
4.410, 000
70,330,000
1,183,000
929,000
50,881,000
70,591,000
10,288,000
1,055,000
1,597,000
4,551,000
7,858,000
4,601,000
84,757,000
49,234,000
47,124,000
57,289,000
25,781,000
59,540,000
763,000
1,310,000
47,112,000
72,810,000
998,000
10,640,000
43,407,000
35,602,000
1,078,000
55,052,000
51,261,000
Participation
In Approved
Regional
Project
Involving
Member
States Of
CARICOM
The brief overview of the environmental service in
the CSME Zone suggests that the environmental
industry has considerable scope and potential. For
that potential to be maximised, however, investment
need to be made in the environment as well as the
creation of an adequate enabling environment to
facilitate its further growth.
56,275,774
A significant amount of the resources for national
projects is related to the financing of enabling
activities in support of the implementation of MEAs.
The regional also benefited from their participation in
regional and global GEF projects. Regional projects
which were approved which involved Member States
of the Caribbean Community exceeded 56m. The
services relating to the implementation of these
projects are provided both by consultants from third
States as well as from the CSME Zone.
The industrial demand for environmental services
also drives demand for the provision of those services
in the CSME Zone. This is probably best illustrated
by the growth for energy environmental service in
Trinidad and Tobago, in light of the importance of its
oil and gas industry.
55
Compiled by the Author from the GEF Project Data Base at
www.gefweb.org. Also see Annex 2 for a breakdown of the
regional projects.
.
18
4. CREATING AN ENABLING ENVIRONMENT
The creation of an enabling environment for the
promotion of environmental services in the CSME
Zone must be addressed within the context of the legal
framework provided by the RT. Hence the institutional
and legal arrangements and deficiencies at the
Community level have an impact on the enabling
environment which is created for the promotion of
environmental services in the CSME Zone. In addition,
issues such as financing an investment in the
environment,
including
banking
procedures;
procurement procedures; access to environmental sound
technologies and know-how and the greater use of
economic instruments are important elements of the
tool kit required to create an enabling environment for
the expansion of the environmental industry in the
CSME Zone.
The Legal and Institutional Framework
Historically, the consideration of the “environment”
within the policy sphere of the Caribbean Community
has been, when compared to the more mainstream areas
of trade and economics; peripheral, at the best56. This
in itself is a constraining factor to the promotion of
trade in environmental goods and services in the
Caribbean Community. The signing of the Revised
Treaty by most of the Member States of the Caribbean
Community and its incorporation into domestic
legislation provides a new legal framework for the
consideration of environmental, natural resources
management and sustainable development issues in the
Caribbean Community, which if implemented can have
a significant impact on the growth of the environmental
industry in the CSME Zone.
This along with the establishment of the Caribbean
Court of Justice (CCJ), which pursuant to Article
211.RT have compulsory and exclusive jurisdiction to
hear and determine disputes arising from the RT,
constitutes a “new legal order” in international law57. It
is within this “new legal order” that the development of
the service sector, pursuant to Article 54.RT, must be
56
Griffith, M. D. and D. Oderson, Strengthening the Inner Circle for
Environment and Development: The Case of the Caribbean
Community. Prepared for CaribInvest (West Indies) Ltd. CaribInvest
(West Indies) Ltd., February 2009.
57
A new legal order is recognised in international law as a treaty
between sovereign status but also takes effect within the domestic
legal systems of Member Status. The order is characterised by the
concepts supremacy of the Community law over national law and
direct effect.
considered. In so doing, cognizance must be taken that
in the exercise of its original jurisdiction, the CCJ is
mandated by Article XVII of the Agreement
Establishing the Court (“the Agreement”) and Article
217.RT to apply such rules of international law as may
be applicable. This requires an expertise ……. that is
entirely different from that to which one is accustomed
in municipal law proceedings58.
Also of significance is the consideration of the
Community freedoms—free movement of goods, the
free movement of skilled Community nations, the right
of establishment and the freedom to provide and receive
services and the free movement of capital—guarantee
by the RT. The exercise of these freedoms as well as
the rights contingent are of great significance to the
further expansion of trade in services, including the
environmental service sector, in the CSME Zone. Of
particular relevance are the right of establishment and
the right to provide and receive services. In the exercise
of these freedoms, however, it is necessary to
distinguish between them. Guidance in this regard, is
provided by the ECJ in Gerhard59. Member States must
therefore ensure that all the administrative procedures
are in place in order to facilitate the exercise of the
Community freedoms, guarantee by the RT.
The environmental and natural resources provisions of
the RT are underpin by a number of fundamental
principles of environmental law. These include, inter
alia, the principles of sustainability and environmental
protection; the precautionary principle; the polluters
pay principle; the principle of prevention; the source
principle; the principle of cooperation and the
protection of the rights of indigenous peoples as issues
well as the general principle of non-discrimination60.
The application of these principles of environmental
law to guide the behaviour of persons, both natural and
juridical operating in CSME Zone, will contributed to
creating an enabling legal framework for the expansion
of trade in goods and services within the CSME Zone.
The constitution of a “new legal order” in international
law, in itself, is not enough, but needs to be
accompanied with the appropriate legal tools and
58
Trinidad Cement Limited and TCL Guyana Incorporated v. The
Co-operative Republic of Guyana, Interim Order, CCJ Application
No. AR 1 of 2008, [2008] CCJ 1 (OJ)
59
Case C-55/94, Gebhard v Consiglio dell’Ordine deglic Avvocati e
Procuratori di Milano {1995} ERC I-4165.
60
Ibid.
19
institutional
mechanisms,
with
supra-national
characteristics, in Caribbean Community Law, to give
full effect to the provisions of the RT. More
importantly, the provisions of the RT must be safeguard
against infringement. This requires the establishment of
a mechanism to be the guardian of the RT, to ensure the
proper application of Caribbean Community Law and
to take action against any infringement. The EC Treaty,
unlike the RT, makes provision from such a mechanism
in the form of a European Union Commission. Article
226.EC provides that
If the Commission considers that a Member State has
failed to fulfil its obligation under the Treaty, it shall
delivered a reasoned opinion on the matter after
giving the State concerned the opportunity to submit
its observations.
If the state concerned does not comply with the
opinion within the period laid down by the
Commission, the latter may bring the matter before
the Court.
No such mechanism exist in the Caribbean Community,
though it is clear that the effective and efficient
functioning of the CSME requires the establishment of
a mechanism similar to what obtains in the EU—a
Caribbean Community Commission. Like in the EU
jurisdiction such a mechanism should have legislative,
administrative, executive and judicial powers and be
supra-national in character61, be independent and
selected on the basis of competence, expertise and
experience. Central to the establishment of a Caribbean
Community Commission, should be a designation of a
Commissioner of Environment and Sustainable
Development whose main task is to facilitate the
effective coordination of the environment and
sustainable development in the Caribbean Community,
as a means of furthering and deepening the process of
integration among the Member States of the
Community62.
From a legislative standpoint, it inconceivable to
understand how many of the provisions of the RT,
including those on environment and natural resources
management, will be given practical legal effect in
Member States without clear legal means—such as
regulations, directives and decisions—for the making of
secondary Caribbean Community Law. The absence of
such means remains a major deficiency in the
governance structure of the Caribbean Community, and
impacts on the Community’s ability to honour many of
the provisions contained in the RT. The need therefore
exists, for means by which Secondary Community Law
could be enacted with the efficiency required. It is
through the enactment of secondary legislation which
must be incorporated into domestic law that the
implementation of the Community policies, including
the environmental and natural resources management
policy can be uniformly applied throughout the CSME
Zone.
A case can be made, like as obtained in the EC
jurisdiction, for the use of secondary Community
Law—by way of regulations, directives and
decisions—as may be necessary for facilitating the
Community’s environmental and sustainable objectives.
All of these means are binding and should be likewise
in the Caribbean Community, if implemented. In the
case of a regulation is should be binding in its entirety
and directly applicable in all Member States; a directive
shall be binding, as to the result to be achieved, upon
each Member State to which it is addressed, but shall
leave to the national authorities the choice of form and
methods and a decision shall be binding in its entirety
upon those whom it is addressed63.
The establishment of a Caribbean Community
Commission and formal legal means for translating
Community decisions into Caribbean Community Law
is consistent with the spirit of Article 54.2. (c).RT,
which mandates the establishment of the appropriate
legal framework to support the service sector in the
Community. These institutional modalities are a sine
qua non for the effective functioning of the CSME, and
by extension, trade in services.
In addition to the RT, another legally binding
instrument—the Economic Partnership Agreement
Between CARIFORUM Member and the European
Community and its Member States—has long term
implications for the shaping of environment and
sustainable development policies in the Caribbean
Community64, and by extension the environmental
service sector. It is even considered by some to provide
an alternative framework to the CSME for individual
country’s future development65. In addition, the EPA
provides a model for future economic and trade
agreements between CARICOM Member States and
63
61
For a more detailed discussion on this issue and the principles
which should guide the establishment of the CARICOM Commission
see Griffith, M. D. and D. Oderson, Strengthening the Inner Circle for
Environment and Development: The Case of the Caribbean
Community.Prepared for CaribInvest (West Indies) Ltd. CaribInvest
(West Indies) Ltd., February 2009.
62
Ibid.
See Article 249.EC
Ibid.
65
Stabroek News, CARICOM Integration and CARICOM
Sovereignty, Wednesday, March 26, 2008. The article makes
reference to the view expressed by Mr. Seaga, a former Prime
Minister of Jamaica, that the EPA was a now much preferred
alternative to the CSME as a future facilitator of Jamaica s economic
development.
64
20
third countries or group of countries66. First and
foremost, the CARIFORUN/EU EPA is a Trade
Agreement for Sustainable Development and the Parties
have agreed that “...the objective of sustainable
development is to be applied and integrated at all
levels of their economic partnership……….. [The
Parties] understand this objective to apply in the case
of the Economic Partnership Agreement as a
commitment….”67 [Emphasis added].
The legally binding commitment to the objectives of
sustainable development in the EPA, if taken seriously
by the Caribbean Community and its Member States,
provides an enabling environment, which if supported
by the right policy options, could stimulate further
demand for the provision of environmental services. As
an example, the provisions in the EPA on the
maintenance of environmental standards, which are also
applicable to investors, mandate the Parties to take,
within their own respective territories, such measures as
may be necessary to ensure through national
legislation of general application, pursuant to Title
II.Chapter 2.Article.3 and 4 that
3.
Investors do not manage or operate their investments in a
manner that circumvents international environmental or
labour obligations arising from agreements to which the
EC Party and the Signatory CARIFORUM States are
parties.
4.
Investors establish and maintain, where appropriate,
local community liaison processes, especially in projects
involving extensive natural resource-based activities, in
so far that they do not nullify or impair the benefits
accruing to the other Party under the terms of a specific
commitment.
The provisions of the EPA with respect to ecoinnovation68 the Parties agree to cooperate, including by
facilitating support, in projects related to
environmentally-friendly
products,
technologies,
production processes, services, management and
business methods, including those related to appropriate
water-saving and Clean Development Mechanism
applications, among others, contributes to the creation
an enabling environment for the expansion of
environmental goods and services in the CSME Zone.
Financing and Investment in the Environment
66
Griffith, M. D. and D. Oderson, Strengthening the Inner Circle for
Environment and Development: The Case of the Caribbean
Community. Prepared for CaribInvest (West Indies) Ltd. CaribInvest
(West Indies) Ltd., February 2009.
67
Article 3.Part 1.EPA
68
Title IV, Chapter 2, Section 1, Article 8.
Investment in the environmental and natural resource
base of the Caribbean Community and its Member
States is an investment in securing the Region’s social
and economic viability and enhancing its
competitiveness. Investment in the Region’s
environmental and natural resources also creates
demand for the provision of environmental services
within the CSME Zone. The Caribbean Community,
itself, has a key role to play in this regard, in ensuring
that the adequate legal and institution structures are in
place and the necessary resources are available to
stimulate the implementation of the policy options
which are necessary.
To be able to do this, without being constrained by the
availability of resources, the Community needs to have
an independent source of resources, derived through
automatic resource transfers from Member States. This
is referred to the “Community Own Resources”, from
which catalytic, “core” resources should be provided
for the funding the implementation of the Community
Environmental and Natural Resources Management
Policy Framework.
To supplement the resources obtained directly from the
“Community’s Own Resources”, other financial
instruments could be established with the assistance of
the international community. In this regard, the
Community could build on existing concepts. One such
financial modality is the Regional Sustainability Fund
for Caribbean SIDS agreed to by the Forum of
Ministers of Environment for Latin America and the
Caribbean69, in November 2004, acting on the
recommendation of the Caribbean SIDS Regional
Meeting for the Preparation of the Comprehensive
Review of the BPOA convened in Trinidad and Tobago
in October of that year. To establish practicability of
establishing such a Fund, a feasibility study has been
prepared and the operation modalities for its
establishment outlined70. Furthermore it has been
suggested that the concept of the Regional
Sustainability Fund be expanded with specific widows
to accommodate the various fund initiatives (i.e. a
Sustainable Tourism Development Fund71; Your
69
See Decision 4 of the Fourteen Meeting of the Ministers of
Environment for Latin America and the Caribbean held in Panama,
November, 2003.
70
On the basis of the discussions which took place at the “Technical
Session on Innovative Financial Modalities for Sustainable
Development in Caribbean SIDS: towards the Establishment of the
Regional Sustainability Fund”, held in Trinidad and Tobago on 6-8
April 2004and the recommendations contained in the consultants’
report entitled “Towards the Establishment of the Regional
Sustainability Fund for Caribbean SIDS” the structure for the
establishment of the Regional Sustainability Fund has been proposed.
71
The Conference of the Heads of Government of the Caribbean
Community at its Twenty-Fourth Meeting held in Jamaica, 2-5 July
21
Change for a Better Environment Project72 as a means
of raising resources for the implementation of
community environmental and natural resource based
actions), which have been proposed for establishment
in the region73.
CARIFORUM/EU EPA could be allocated specifically
for the establishment of this Facility76.
Opportunities for the expansion of trade in
environmental goods and service exist in the region, but
require targeted investment. Griffith74 identified a
number of areas including, inter alia, the production of
furniture and other products from Non-Timber Forest
Products; an industry has a huge potential, not only to
generate an export industry, but also to transform local
communities who depend on forest resources for their
survival; the commercialisation of the Barbados Water
Heating System as well as the greater utilisation of the
potential of the region’s biodiversity assets. These are
all areas which have export potential and could benefit
from public-private partnerships (PPP), in order to
facilitate their further growth and expansion.
The responsibility for creating an enabling environment
for the further expansion of the environmental service
sector not only lies with officialdom, but also with the
private sector, particularly the financial sector. A
critical requirement, in this regard, is the mainstreaming
of sustainability practices in the financial sector.
In order to exploit the opportunities highlighted, it is
necessary for modalities to be available which provide
access to financing for the development of ecoinnovation initiatives, which might otherwise not be
available. In this regard, the establishment of an
Environment and Sustainable Investment Facility
(ESDIF) by the Community75 has been suggested. The
purpose of such a Facility would be to facilitate access
to financial resources, specifically to invest in projects
aimed at the sustainable utilisation of environmental
resources, where currently resources are limited. A
special pool of resources from the Regional
Development Fund established pursuant to the
2003, Montego Bay, Jamaica reaffirm the need to establish the
Sustainable Development Fund.
72
The rationale is to encourage persons, particularly, visitors to the
region who have used the region’s environmental resources (i.e.
beaches, water, sea etc.) for their own benefit and enjoyment to
contribute “change” (as in money) to contribute to the management of
the region’s resource base. To facilitate the implementation of this
project, custom made receptacles will be placed at the main ports of
entry/exit throughout the Community. The CNIRD/PISLM
Secretariat may be contacted for further information by visiting
www.cnirdpislm.org
73
For a more in-depth discussion see Griffith, M. D. and D. Oderson,
Strengthening the Inner Circle for Environment and Development:
The Case of the Caribbean Community.
74
For a more detailed overview of some of these opportunities see
Griffith. M.D., The Caribbean, Discover the Region, Its Assets and
Investment Opportunities, Prepared for CaribInvest (West Indies)
Ltd., CaribInvest (West Indies) Ltd., March 2007.
75
Griffith, M. D. and D. Oderson, Strengthening the Inner Circle for
Environment and Development: The Case of the Caribbean
Community. Prepared for CaribInvest (West Indies) Ltd., CaribInvest
(West Indies) Ltd., February 2009.
Mainstreaming Sustainable Practices in the Financial
Sector
To overcome the barriers to the integration of
sustainability practices in the financial sector The
Workshop:
Evaluation
and
Management
of
Environmental and Social Risks in Lending and
Investment Practices77 held in Barbados in November
2008, have made a number of recommendations which
could be implemented by the banks; banking
associations and regulators. In the case of the banks the
increase training of staff in areas such as sustainable
finance, including mandatory training for credit officers
and the risks and returns of sustainable business are
highlighted. In addition, the banks should incorporate
environmental best practices in risk management and
establish environmental risk assessment units as part of
their operations.
At the sector level, emphasis should be placed on
fostering closer cooperation between banks, the
adoption of common standards and the facilitation of
the cross-fertilization between countries’ experiences.
In the case of regulator, the development and
strengthening of partnership between Central Bank and
financial institutions were emphasized as well as the
provide incentives for environmental audits and the
incorporation of environment indicators as part of their
risk assessment operations. The overall objective is to
mainstream sustainable practices into the banks’
lending operations, thus making the borrower more
sensitive to proper environmental stewardship.
Incentives
The enabling environment for trade in services could
be improved significantly with the integration of
environmental management in macro-economic and
sectoral economic policy, as well as making public
76
Ibid.
See Workshop Conclusions on the Immediate Needs of the
Caribbean Financial Sector in Terms of Sustainability, The
Conclusion of the Training Workshop: Evaluation and Management
of Environmental and Social Risks in Lending and Investment
Practice, 24 November 2008, The Hilton Barbados, at
http://www.unepfi.org/fileadmin/events/2008/barbados/barbados_con
clusions.pd
77
22
expenditure more environmentally sensitive78. In this
regard, the internalisation of environmental damage
becomes a fundamental challenge. For this to be
achieved fiscal policy must increasingly incorporate
the “polluter’s pays” principle and greater emphasis
placed on how to implement environmental policy79.
This would entail widening the scope of environmental
policy instruments available by introducing a range of
economic instruments-environmental taxes, refundable
deposits, and the introduction of property rights, thus
making environmental management more flexible,
efficient and cost-effective80. This requires institutional
change which involves closer linkages between
environment Ministries and those dealing with finance,
trade and economic planning.
The use of economic instruments to stimulate the
market penetration of environmental goods and services
in the CSME is probably best illustrated by the
Barbados experience with respect to the solar water
heating market in Barbados. Fiscal incentives were
initially used to help stimulate the demand for solar
water heaters. From an installation capacity of
approximately 12 units in 1974 when the incentives
were first introduced; there are approximately 35,000
solar water heating units installed on the island, over
25,000 systems on homes and the remainder on hotels
and other tourist accommodations81.
Fiscal incentives were first introduced through the
Fiscal Incentive Act, 1974, which exempted solar water
heating raw materials (e.g., tanks, collectors) from the
20 percent import duty. This result in lowered the
installed cost of a unit by 5 to 10 percent. This along
with the imposition of a 30 percent consumption tax on
conventional electric water heaters played a key role in
stimulating demand for solar water heaters in
Barbados82. The Income Tax Amendment in 1980
through to June 1992, when it was suspended as part of
IMF structural reforms, which allowed the deduction of
the full-cost of a solar water heating installation. The
deduction was reinstatement in 1996 and remains in
place as of May 2008, as part of a personal home
improvement allowance deduction of up to BD$3,500
78
Griffith, M. D. and D. Oderson, Strengthening the Inner Circle for
Environment and Development: The Case of the Caribbean
Community. Prepared for CaribInvest (West Indies) Ltd. CaribInvest
(West Indies) Ltd., February 2009.
79
Griffith, M. D. and B. Persaud, Introduction to Economic Policy
and the Environment, in Griffith, M. D. and B. Persaud (Ed :),
Economic Policy and the Environment: The Caribbean Experience,
Centre for Environment and Development, University of the West
Indies, 1995.
80
Ibid.
81
Perlack, B and W. William Hinds, Evaluation of the Barbados Solar
Water Heating Experience, September 2003.
82
Ibid.
per year for mortgage interest, repairs, renovations,
energy or water saving devices, solar water heaters, and
water storage tanks
Another approach adopted in the CSME Zone, to
support
environmental
or
natural
resources
management, is exemplified by the establishment of the
Green Fund in Trinidad and Tobago, by the Finance
Act 2000 and the Belize Protected Areas Conservation
Trust (PACT), respectively. In the case of the former, a
0.1 percent tax—the Green Fund Levy—is imposed on
the gross sales or receipts of all companies conducting
business in Trinidad and Tobago; the proceeds of
which, enables grants to be made to community groups
and organisations engaged in activities to remediate,
reforest, and conserve the environment. Similarly in
Belize, the Belize Protected Areas Conservation Trust
(PACT), created in 1996, derives its resources from
conservation taxes paid by foreign tourists upon
departure, protected area entry fees, and taxes paid by
cruise ships visiting Belize.
The establishment of a regime for incentives; pursuant
to Article 54.2.(b).RT, for the development of the
service sector in the Caribbean Community is also
relevant to trade in environmental services. In devising
such a regime for the environmental service sector, due
consideration should be given to incentives which are
geared to mainstreaming sustainability into the financial
sector. In this regard, the banks could give
consideration to the creation of loan pricing
mechanisms to encourage environmentally friendly
practices.
Procurement Procedures
The drive towards the achievement of the objective the
“full integration of the national markets of Member
States of the Community into a single, unified and open
market area”, pursuant to Article 78.2.(a).RT should be
accompanied by procurement procedures, particularly
at the Community level which encourages horizontal
integration of firms across the CSME Zone. This should
however be done taking into consideration the
obligations of Member States contained in legal
instruments to which they are Party.
Human Resources
The Region has gaps in its human resources capability
in environmental services. These gaps occur both at the
policy and technical levels. Notwithstanding this, recent
years have witnessed an increase number of
Community nationals who gained professional training
in environmental and natural resources. The increase
23
availability of such expertise has provided a basis for
the provision of trade in environmental services. In
order to protect and ensure the quality and integrity of
the environmental profession and to build capacity to
serve the region, a number of institutions have been
formed, notably the Jamaica Institute of Environmental
Professional and the Barbados Association of
Environmental Professionals. These Associations have
an important role to play in protecting the integrity of
the environment profession in the CSME Zone,
including the standardisation of the professional
qualifications required for persons to practice as
environmental professional in the CSME Zone.
Given the projected growth for environmental services
will be in developing countries, a critical issue which
arises in the planning for the Community human
resources capability, is whether the region can provide
such services internationally. This will depend to a
large extent on the ability of the Region’s providers of
environmental service to organise themselves in such a
manner as to be internationally competitive. In this
regard, consideration needs to be given to the horizontal
integration of the environmental services skills within
the CSME Zone as a means of competing globally. This
will require a firm or groups of firms to bring their
expertise together to undertake complete projects. This
approach however, brings into focus, the role of the
Caribbean Investment Fund and the extent to which it is
geared towards supporting such an initiative.
Fund84 (CCTF). The core resources for the
capitalisation of the CCTF should be provided from the
“Community Own Resources”. The purpose of these
mechanisms is to enable the Caribbean Community to
provide technical assistance not only to its Member
States, but also to other countries, particularly SIDS and
other developing countries.
The creation of a conducive enabling environment for
the expansion of the environmental industry in the
CSME Zone is critical, if the Region is to maximise any
opportunities which might exist. Of importance as well
is the need for mechanisms and modalities that foster a
Community approach to the development of the
industry.
In exploring this option, consideration should also be
given to modalities which have already been agreed to
by the international community. In this regard, due
consideration should be given to the original concept of
the Small Island Developing States Technical Assistant
Programme83 (SIDS/TAP), which is an integral part of
the implementation strategy of Programme of Action
for the Sustainable Development of SIDS, Originally
conceptualised to facilitate inter- and intra-regional
cooperation on sustainable development between SIDS,
this modality could be reconfigured and used as a
platform for expanding trade in services between SIDS,
including environmental services.
To facilitate this and to provide Community nationals
with the opportunities to trade their services, the
Community and its Member States should establish a
Caribbean
Community
Technical
Assistance
Programme, support by a Caribbean Community Trust
84
83
See paragraph 106 of the United Nations General Assembly,
Report of the Global Conference on the Sustainable development of
Small Island Developing States, Bridgetown, Barbados, 25April-6
may 1994, A/CONF.167/9, October 1994.
For a more in-depth discussion on these modalities See Griffith, M.
D. and D. Oderson, Strengthening the Inner Circle for Environment
and Development: The Case of the Caribbean Community. Prepared
for CaribInvest (West Indies) Ltd., CaribInvest (West Indies) Ltd.,
February, 2009.
24
5. ANALYSIS OF PRESENT AND FUTURE OPPROTUNITIES INCLUDING POTENTIAL FACTORS
WHICH ARE LIKELY TO CONTRIBUTE TO THE GROWTH OF ENVIRONMENTAL SERVICES IN
THE CSME ZONE
The Environmental Industry
In 2003, the total size of the global environmental
market is estimated at $550 billion85. This is expected
to grow to US$ 640 billion in 2010 with an annual
growth rate of 8 percent; thereby placing the
environment industry at roughly the same size as the
pharmaceuticals
or
information
technologies
industries86. The potential of trade in environmental
services cannot therefore be ignore by developing
countries, irrespective of their size. Environmental
services, as distinct from the equipment or resources
market, account for about 50 per cent of the total
market: solid waste management accounts for 22.6
percent, water treatment services for 14.3 per cent,
consulting and engineering for 5.9 percent, and
remediation and industrial services, 3.3 percent87.
The share of the global environmental market is highly
skewed in favour of the developed world. In 2001, the
United States, Japan and Western Europe accounted for
85 per cent of revenue generation in from the sector88.
In the developed countries where the market is more
“mature” annual growth was 1.6 per cent in 2000 and
2001 and in developing countries 7 to 8 per cent89.
Environmental
infrastructure
services
(water,
wastewater, solid waste) constitute 62 per cent of the
global market.
85
United Nations Conference on Trade and Development, Report of
The Expert Meeting On Definitions And Dimensions Of
Environmental Goods And Services In Trade And Development,
TRADE AND DEVELOPMENT BOARD Commission on Trade in
Goods and Services, and Commodities, Expert Meeting on
Definitions and Dimensions of Environmental Goods and Services in
Trade and Development Geneva, 9–11 July 2003 held at the Palais
des Nations, Geneva, from 9 to 11 July 2003. TD/B/COM.1/59,
D/B/COM.1/EM.21/3, 27 August 2003.
86
Ibid.
87
International Trade Centre, The Environmental Services Business:
Big and Growing, International Trade Forum-Issue 2/2001,
http://www.tradeforum.org/news/fullstory.php/aid/268/The_Environ
mental_Services_Business:_Big_and_Growing.html
88
United Nations Conference on Trade and Development, Report of
The Expert Meeting On Definitions And Dimensions Of
Environmental Goods And Services In Trade And Development,
TRADE AND DEVELOPMENT BOARD Commission on Trade in
Goods and Services, and Commodities, Expert Meeting on
Definitions and Dimensions of Environmental Goods and Services in
Trade and Development Geneva, 9–11 July 2003 held at the Palais
des Nations, Geneva, from 9 to 11 July 2003. TD/B/COM.1/59,
D/B/COM.1/EM.21/3, 27 August 2003.
89
Ibid.
Most of the future growth in environmental services is,
however expected to be in the developing world. It is
estimate that developing and emerging markets will
have 15 per cent market share of the environmental
industry in the 21st century compares with an estimate
of less than 10 per cent in 199590. Over the decade to
2010, the United Kingdom’s Joint Environmental
Markets Unit predicts that developing and transition
countries will expand their environmental business by
10 percent a year, producing a market of US$ 178
billion, compared with a 3 to 5 percent growth in
developed economies, which will still hold the lion’s
share of the market (perhaps US$ 773 billion)91. With
the increasing emphasis being placed globally on the
establishment of green economies, as well as the need
to address the many environmental and natural
resources issues, particularly in the developing world
as well as action aimed at fulfilling the Millennium
Development Goals (MDGs) will drive the demand for
environmental goods and services.
Potential Factors which are likely to contribute to the
Growth of Environmental Services in the CSME Zone
There is general consensus of the “win-win”
dimensions of the liberalisation of the environmental
services and its inter-relationship with environmental
protection, human health and sustainable development.
Increase liberalisation in environmental goods and
services should result in increase access to
environmental technologies by the developing world by
facilitating investment and transfers of environmental
technologies and knowledge; the gains which results
from increase health and environmental performance,
of both the global and local environment.
However as highlighted by Cuba92, the process of
liberalisation does not automatically enhance the
90
International Trade Centre, The Environmental Services Business:
Big and Growing, International Trade Forum-Issue 2/2001,
http://www.tradeforum.org/news/fullstory.php/aid/268/The_Environ
mental_Services_Business:_Big_and_Growing.html
91
Ibid.
WTO, Environmental Services, Communications from Cuba,
Council for Trade in Services, S/CSS/W/142, 22 March 2002, (021498).
92
25
competitiveness of the developing countries. Indeed,
their domestic capacity has to be strengthened with a
view to achieving the efficiency they need to face up to
competition from the trans-national corporations with
access to their markets; hence the need for the
negotiations to take Members' different levels of
development into account and facilitate progressive
liberalisation. Cuba93 further contends that trade
liberalisation in environmental services will only be
able to strengthen domestic service suppliers if
differential treatment is applied, with the view of
eliminating the technological gap between developed
and developing countries.
The growth in environmental goods and services in the
CSME Zone is likely to expand in the future. A number
of factors, in addition to some of those highlighted
before, are likely to contribute to driving the potential
growth of trade in environmental services in the CSME
Zone. These are summarised as follow:
Establishment of regional and national institutional
regulatory frameworks for environmental and natural
resources management and the integration of
environmental planning in national economic and
sectoral planning: A critical and strategic requirement
which could drive the expansion of the environmental
industry in the CSME Zone is the appropriate legal and
institutional framework particularly at the regional
level. A major objective, in this regard, would be to
elevate the importance of environment and natural
resources management as one of the fundamental
objectives of the single, unified and open market area
envision by Article 78.2. (a).RT. These changes would
however need to be made within the overall legal and
institutional requirements highlighted in the foregoing
for the full and effective implementation of the CSME.
Fundamental to this is the full application and
interpretation of the RT including its environmental
and natural resources provisions as well as the
jurisprudence of CCJ:. The CCJ, pursuant to Article
211.RT, have compulsory and exclusive jurisdiction to
hear and determine disputes concerning to the
interpretation and application of the RT. This includes
the environmental and natural resources provisions of
the RT. Furthermore, pursuant to Article 215.RT The
member States, Organs, Bodies of the Community,
entities and persons to whom a judgment of the CCJ
applies, shall comply with the judgment promptly. The
adjudication by the CCJ, when this occurs will shape
the Community and its Member States approach to
environment and natural resources issues, for the better.
93
This in turn will contribute to providing an enabling
environment for the expansion of environmental goods
and services in the CSME Zone.
The increasing trend globally of transforming
economies into green economies, and the
embracement of this philosophy in the CSME Zone: It
will be inescapable for the Caribbean Community and
its Member States to avoid this trend. The effort by
Dominica to transform the island into an
environmentally sound organic island is evidence of
this trend. A critical dimension of the development of
green economies in the CSME Zone is the generation of
energy from renewable sources such as, inter alia,
solar, wind and geothermal; resources with which the
region is blessed. These sources will become more
important as part of the energy mix of the Member
States of the CSME Zone.
The increasing demand for the protection of the
region natural and cultural resources on which the
Region’s tourism depends: The increasing emphasis
being placed on the development of the Region’s
natural and cultural assets in support of the tourism
industry makes it imperative that investment must be
made in protecting and enhancing these resources.
Furthermore, Article 55.RT mandates the Community
to formulate proposals for sustainable tourism
development, recognising both, the importance of
tourism to the Region’s economic development and the
need to conserve its cultural and natural resources and
to maintain a balance between a healthy ecology and
economic development. A more environmentally
sensitive approach to tourism development in the
CSME Zone will not only contribute to enhancing the
competitiveness of the Region’s tourism product but
would also serve as a driver for the further expansion of
the Region’s environmental services sector.
The development of the next frontier of Caribbean
development—the sustainable management and
utilisation of the resources within and under the
Caribbean Sea: The Caribbean Sea is an important
resource and ecosystem to the Caribbean Community
and its Member States as it supports a number of
important sectors, including inter alia, fisheries, marine
transport and in particular cruise tourism; marine
recreational activities which support the Region’s
tourism industry as well as the living and non-living
resources contained therein and under the sea. A robust
regional programme aimed at the sustainable
management and utilisation of the resources within and
under the Caribbean Sea should create opportunities for
the provision of environmental services.
Ibid.
26
Furthermore, an integrated Plan for the Caribbean Sea
must of necessity also include the formulation of a
marine environment protection strategy94. Such a
strategy should include, pursuant to Article 140.1. (c),
and 3.RT, the protection of the marine environment
from the effects of vessel source pollution and in
combating the effects of oil spills; co-operation among
Member States in the implementation of relevant
maritime instruments relating to maritime safety,
marine environmental protection, marine accident
investigation and the facilitation of marine traffic95. It
should also address, pursuant to Articles 60.3. (d) and
141.RT, safeguarding the marine environment from
pollutants and hazardous waste96.
The increasing appreciation of the economic value of
the Region’s biodiversity resources and traditional
knowledge, particularly of the Region’s indigenous
peoples: The region’s has considerable biological
resources, both terrestrial and marine. A greater
appreciation of it potential economic value could
stimulate greater interest on the part of the Community
in developing these assets. This will require investing
not only in research but in the legal protection of these
valuable resources.
The binding commitments contained in trade and
economic of which the Caribbean Community and its
Member States are Party: A major feature of trade
agreements is the commitment
to raising
environmental, health and safety standards, including
standards and technical regulations and sanitary and
phytosanitary measures. These agreements will drive
change with respect to the importance placed by
persons, both natural and juridical on the environment
and natural resource base of the Community. This is
exemplified by the CARIFORUM/EU EPA, which is a
Trade Agreement for Sustainable Development.
Furthermore, the Parties have agreed that “...the
objective of sustainable development is to be applied
and integrated at all levels of their economic
partnership……….. [The Parties] understand this
objective to apply in the case of the Economic
Partnership Agreement as a commitment. Since the
CARIFORUM/EU EPA will be used as a standard, as
the Community and its Member States negotiates other
trade agreements;
Adherence to international environmental, health and
safety standards, including sanitary and phytosanitary
measures: The increasing importance of environmental,
health and quality and product standards and assurance
schemes, which could serve as non-tariff barriers to
market access, makes it imperative for producers and
service providers from the Caribbean Community and
its Member States to develop the technical capacity and
capability to comply with such standards.
The
requirement this imposes on the Caribbean producers
and service providers creates opportunities for the
provision of environmental services in this area. To
facilitate a more structured approach to the adoption of
and compliance with environmental standard in the
Caribbean Community, pursuant to Articles 67(3)
(d).RT and 74.2. (c), (d) and (e).RT, the Caribbean
Environmental Health Institute (CEHI) should be refocused and re-structured to play the lead role in this
area97. To effectively discharge this mandate, the CEHI
should be restructured and transformed into the
Caribbean Community Environmental Standards
Institute (CCESI)98. This is consistent with Article
67(4) (c).RT which makes provision for the facilitation
of standards infrastructure development.
These are some of the factors which are likely to
influence the growth of the environmental industry in
the CSME Zone. However, the Member States of the
CSME Zone will be unable to maximise the potential
which exists, if greater importance is not given to
environment industry and the necessary investment
made and legal and institutional arrangements put in
place to facilitate the growth of the industry.
94
Griffith, M.D. and D. Oderson, Strengthening of the Inner Circle
for Environment and Sustainable Development: The Case of the
Caribbean Community. Prepared for CaribInvest (West Indies)
Limited, CaribInvest (West Indies) Limited, February 2009.
95
Ibid.
96
Ibid.
97
98
Ibid
Ibid.
27
6. RECOMMENDATIONS WITH RESPECT TO POLICY ACTIONS, DATA GAPS AND LEGISLATIVE
CHANGES
A starting point for the further promotion of the
development of the environmental services sector in the
CSME Zone is a clear demonstration at policy level at
both the national and regional levels of a commitment
to the integration of environmental and sustainable
development practices into the economic and social
planning. This must be done in a tangible manner,
including, inter alia, the establishment of the necessary
legislative frameworks; appropriate institutional
mechanisms; the allocation of adequate financial
resources and the integration of environmental and
sustainable development principles into economic and
sectoral planning. At the Caribbean Community level,
the initiative of formulating an Environmental and
Resources Policy Framework is a start. However, this
policy framework should be placed within the wider
framework of a Caribbean Community Sustainable
Development Strategy. This implies a paradigm shift to
more CSME Zone planning; an exercise that requires
the clear definition of common spaces—economic,
social, environmental, security—as well as the
operation
of
supra-national
institutions
and
arrangements.
A number of specific recommendations arise from the
foregoing analyses which could form the basis for the
elements on environmental services to be included in
the Strategic Plan for Services in the CSME. These are
summarised as follows:
International Level
¾
More visibility of the Community and its
Member States in articulating the Region’s
views on trade in environmental goods and
services in the WTO.
Classification of Environmental Services
¾
Consistent
statistical
definitions
and
classification
on
what
constitutes
environmental services in the CSME Zone is
necessary. The definitions and classifications
should be extended to include environmental
goods. Establishing consistent definitions and
classifications of the environmental services
sector is critical step, in order to facilitate the
identification of the appropriate policy options
to facilitate the expansion of the sector in the
CSME Zone and beyond.
¾
More in-depth research is required on the
environmental goods and services sectors in
the CSME Zone and their contribution to of
the social and economic development of the
region. In this regard, resources should be
sought to undertake a comprehensive analysis
of environmental goods and services sector in
the CSME Zone.
Creating an Enabling Environment
(a) Regional Legislative Measures
¾
Consideration of trade in services within the
CSME Zone cannot be considered in isolation
of the wider legal and institutional
arrangements which exist in the Caribbean
Community. Trade in services is an integral
part of the production integration framework
of the Caribbean Community and an essential
dimension of the Economy in CSME. . The
existing constraints that are imposed as a
direct result of the incomplete legal and
institutional arrangements minimise the
dividend which could result form .the full
integration of the national markets of Member
States of the Community into a single, unified
and open market area, an instead become
barriers.
Hence
the
following
recommendations:
• The
effective
and
efficient
functioning of the CSME requires the
establishment of a mechanism to
perform the role of the guardian of
the RT. This could take the form of a
Caribbean Community Commission
which should have legislative,
administrative, executive and judicial
powers and be supra-national in
character.
• A Commissioner of Environment and
Sustainable Development should be
designated as part of the Caribbean
Community Commission structure.
The main task is to facilitate the
effective
coordination
of
the
environment
and
sustainable
development issues in the Caribbean
Community.
• The Community need to establish
clear legal means in the form of—
28
regulations,
directives
and
decisions—for
translating
Community
decisions
into
Community Law. These legal means
should be binding. In the case of a
regulation it should be binding in its
entirety and directly applicable in all
Member States; a directive shall be
binding, as to the result to be
achieved, upon each member state to
which it is addressed, but shall leave
to the national authorities the choice
of form and methods and a decision
shall be binding in its entirety upon
those whom it is addressed.
¾
Adequate resources should be allocated
through the CARIFORUM/EU EPA to enable
the Member States of the Caribbean
Community to make the transition
to
sustainable development, therefore giving
practical meaning the commitment to the
objective of sustainable development agreed to
in this instrument and which is to be applied
and integrated at all levels of their economic
partnership.
¾
¾
¾
(b) Financing and Investing in the Environment
Investment in the environmental and natural
resource base of the Caribbean Community and its
Member States is an investment in securing the
Region’s social and economic viability and
enhancing its competitiveness. Mechanisms must
therefore be found to mobilise the resources
necessary, both from regional as well as extraregional resources, to invest in the Region’s
environment. The core resources must however be
generated from within the CSME Zone,
irrespective of how financially disadvantaged the
Member States of the Caribbean Community are
perceived to be.
¾
The establishment of an independent source of
resources—“Community Own Resources”—
derived through automatic resource transfers
from Member States for the Community.
Catalytic, “core” resources should be provided
from the “Community Own Resources” to
facilitate the implementation of the
Community Environmental and Natural
Resources Management Policy Framework.
¾
¾
The Regional Sustainability Fund for
Caribbean SIDS agreed to by the Forum of
Ministers of Environment for Latin America
and the Caribbean, in November 2004, should
be embraced by the Community and its
Member States, and expanded with specific
widows to accommodate the various fund
initiatives being suggested for establishment in
the Caribbean Community. The establishment
of such a mechanism should provide the basis
for a more systematic approach to the
mobilisation of resources to support
environment and sustainable development
initiatives in the CSME Zone.
The
establishment
of
public-private
partnerships (PPP) in order to facilitate their
further growth and expansion of innovative
initiatives which utilise the resources and
technology to develop environmental goods
and services, in particular, those with export
potential.
The establishment of an Environment and
Sustainable Investment Facility (ESDIF) by
the Community to facilitate access to financial
resources, specifically to invest in projects
aimed at the sustainable utilisation of
environmental resources, where currently
resources are limited. A special pool of
resources from the Regional Development
Fund
established
pursuant
to
the
CARIFORUM/EU EPA could be allocated
specifically for the establishment of this
Facility.
The mainstreaming of sustainability practices
in the financial sector. In this regard, the
recommendation resulting from the Barbados
Workshop in November 2008 should be acted
upon by the appropriate institutions.
The establishment of a regime for incentives,
pursuant to Article 54.2. (b).RT, for the
development of the service sector in the
Caribbean Community is also relevant to trade
in
environmental
services.
Economic
instruments for environmental and natural
resources management should form an integral
part of the regime for the service industry in
the CSME Zone.
(c) Human Resources
The Community’s human resources capability,
including those contained in the Caribbean Diaspora, is
an asset which needs to be harnessed as a region in
order to increase its marketability globally.
Mechanisms, however, need to be established by the
29
Community and its Member States to facilitate this. The
environmental service providers in the CSME Zone
have both the technical skills and experience to be
competitive internationally. Both the environmental
service provider, themselves and officialdom have roles
to play in maximizing the dividend which a SME
provides, in this regard.
¾ The
horizontal
integration
of
the
environmental services skills within the
CSME Zone, as well as between persons,
natural and juridical, from the CSME Zone
and those from third countries, as a means of
competing globally, should be promoted.
This will require a firm or groups of firms to
bring their expertise together to undertake
complete projects.
¾ Support for the horizontal integration of skills
and expertise across the CSME Zone should
be one of the priority areas of focus for the
portfolio of the Caribbean Investment Fund.
¾ The Small Island Developing States
Technical Assistant Programme (SIDS/TAP),
which is an integral part of the
implementation strategy of the BPOA, should
be reconfigured and used as a platform for
expanding trade in services, including in
environmental services between and among
SIDS, as a first step and expanding to other
developing countries. Since SIDS/TAP is a
modality agreed to by the international
community, catalytic resources should by
sought from them to launch such a
programme.
¾
To facilitate this and to provide Community
nationals with the opportunities to trade their
services, the Community and its Member
States should establish a Caribbean
Community
Technical
Assistance
Programme, support by a Caribbean
Community Trust Fund (CCTF). The core
resources for the capitalisation of the CCTF
should be provided from the “Community
Own Resources”. The purpose of these
mechanisms is to enable the Caribbean
Community to provide technical assistance
not only to its Member States, but also to
other countries, particularly SIDS and other
developing countries
Conclusion
The environmental industry in the CSME Zone is not
insignificant. Even with the limitation of hard data, it is
evident that its scope is considerable. One constraint
however, is that the environment is not considered as an
industry, in its own right in the CSME Zone. Hence
many environmental services are not normally
classified as such. A greater focus on trade in
environmental goods and services in the CSME Zone
should increase the awareness of the importance of the
environment industry to the future development of the
CSME Zone.
Most of the recommendations made in this paper can be
implemented in a reasonable period of time if the
political will exists to do so. Many of the
recommendations made have been subject of discussion
over the years. At the policy level, the suggestions with
respect to the legal and institutional arrangement
necessary for the effective functioning of the CSME
have been on the table for over a decade. As an
example, the issue of the establishment of a CARICOM
Commissioner goes back to the decision of the
Conference in 1990 to establish a CARICOM
Commissioner to commence functioning by 1 October
199099 and has been considered by the Community, ad
infinitum.
The concept of the SIDS/TAP is an integral part of the
BPOA which has been adopted by the international
community since 1994. In the area of financing, the
concept of the Regional Sustainable Fund (RSF) has
been endorsed by the Forum of Minister for Latin
America and the Caribbean since 2004 and a study
undertaken since 2005 to determine its feasibility. The
issue of the “Community Own Resources” has been
subject to consideration since the 1980’s and in 1991
the Conference mandated the establishment of a
Working Group of Senior Officials to examine the
question of a source of funds for the Community100.
Much of the ground work have been done on many of
the issues which are required for creating the enabling
environment necessary for the expansion of the
environmental services sector in the CSME Zone. What
is required immediately is action rather than only
articulation.
99
Communiqué Issued at the Conclusion of the Eleventh Meeting of
Conference of Heads of Government of the Caribbean Community,
31 July-02August 1990, Kingston, Jamaica.
100
The West Indies Commission, Report of the West Indian
Commission, Time for Action. The Press, University of the West
Indies, Mona, Jamaica, West Indian Commission, 1993.
30
ANNEX 1
SERVICES SECTORAL CLASSIFICATION LIST101
SECTORS AND SUB-SECTORS
1.
BUSINESS SERVICES
A.
a.
b.
c.
d.
e.
f.
g.
Professional Services
Legal Services
Accounting, auditing and bookkeeping services
Taxation Services
Architectural services
Engineering services
Integrated engineering services
Urban planning and landscape
architectural services
Medical and dental services
Veterinary services
Services provided by midwives, nurses,
physiotherapists and para-medical personnel
Other
h.
i.
j.
k.
B.
a.
CORRESPONDING CPC
Section B
862
863
8671
8672
8673
8674
9312
932
93191
b.
c.
d.
e.
Computer and Related Services
Consultancy services related to the
installation of computer hardware
Software implementation services
Data processing services
Data base services
Other
C.
a.
b.
c.
Research and Development Services
R&D services on natural sciences
R&D services on social sciences and humanities
Interdisciplinary R&D services
851
852
853
D.
a.
b.
Real Estate Services
Involving own or leased property
On a fee or contract basis
821
822
E.
a.
b.
c.
d.
e.
Rental/Leasing Services without Operators
Relating to ships
Relating to aircraft
Relating to other transport equipment
Relating to other machinery and equipment
Other
F.
a.
b.
Other Business Services
Advertising services
Market research and public opinion
polling services
Management consulting service
Services related to man. consulting
Technical testing and analysis serv.
Services incidental to agriculture, hunting and
forestry
c.
d.
e.
f.
101
841
842
843
844
83103
83104
83101+83102+
83106-83109
871
864
865
866
8676
881
World Trade Organisation (WTO), MTN.GNS/W/120, Services Sectoral Classification List, Note By The Secretariat, 10 July 1991.
31
g.
h.
i.
Services incidental to fishing
Services incidental to mining
Services incidental to manufacturing
882
883+5115
884+885
j.
k.
l.
m.
887
872
873
8675
o.
p.
q.
r.
s.
t.
Services incidental to energy distribution
Placement and supply services of Personnel
Investigation and security
Related scientific and technical consulting
services
Maintenance and repair of equipment
(not including maritime vessels, aircraft
or other transport equipment)
Building-cleaning services
Photographic services
Packaging services
Printing, publishing
Convention services
Other
2.
A.
COMMUNICATION SERVICES
Postal services
7511
B.
Courier services
7512
C.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
Telecommunication services
Voice telephone services
Packet-switched data transmission services
Circuit-switched data transmission services
Telex services
Telegraph services
Facsimile services
Private leased circuit services
Electronic mail
Voice mail
On-line information and data base retrieval
electronic data interchange (EDI)
enhanced/value-added facsimile services, incl.
store and forward, store and retrieve
code and protocol conversion
on-line information and/or data
processing (incl.transaction processing)
other
n.
m.
n.
o.
D.
a.
b.
c.
d.
e.
f.
Audiovisual services
Motion picture and video tape production and
distribution services
Motion picture projection service
Radio and television services
Radio and television transmission services
Sound recording
Other
E.
Other
3.
CONSTRUCTION AND RELATED ENGINEERING SERVICES
633+
8861-8866
874
875
876
88442
87909*
7521
7523**
7523**
7523**
7522
7521**+7529**
7522**+7523**
7523**
7523**
7523**
7523**
7523**
n.a.
843**
9611
9612
9613
7524
n.a.
*
The (*) indicates that the service specified is a component of a more aggregated CPC item specified elsewhere in this classification list.
**
The (**) indicates that the service specified constitutes only a part of the total range of activities covered by the CPC concordance
(e.g. voice mail is only a component of CPC item 7523).
32
A.
General construction work for buildings
512
B.
General construction work for civil engineering
513
C.
Installation and assembly work
514+516
D.
Building completion and finishing work
517
E.
Other
4.
DISTRIBUTION SERVICES
A.
Commission agents' services
621
B.
Wholesale trade services
622
C.
Retailing services
631+632
D.
E.
Franchising
Other
8929
5.
EDUCATIONAL SERVICES
A.
Primary education services
921
B.
Secondary education services
922
C.
Higher education services
923
D.
Adult education
924
E.
Other education services
929
6.
ENVIRONMENTAL SERVICES
A.
Sewage services
9401
B.
Refuse disposal services
9402
C.
Sanitation and similar services
9403
D.
Other
7.
FINANCIAL SERVICES
A.
a.
b.
c.
d.
All insurance and insurance-related services
Life, accident and health insurance services
Non-life insurance services
Reinsurance and retrocession
Services auxiliary to insurance (including
broking and agency services)
B.
a.
b.
c.
Banking and other financial services
(excl. insurance)
Acceptance of deposits and other repayable funds
from the public
Lending of all types, incl., inter alia, consumer
credit, mortgage credit, factoring and financing of
commercial transaction
Financial leasing
812**
8121
8129
81299*
8140
81115-81119
8113
8112
33
d.
e.
f.
g.
h.
i.
j.
k.
l.
All payment and money transmission services
Guarantees and commitments
Trading for own account or for account of customers,
whether on an exchange, in an over-the-counter
market or otherwise, the following:
- money market instruments (cheques, bills,
certificate of deposits, etc.)
- foreign exchange
- derivative products incl., but not limited to,
futures and options
- exchange rate and interest rate instruments,
inclu. products such as swaps, forward rate agreements, etc.
- transferable securities
- other negotiable instruments and financial
assets, incl. bullion
Participation in issues of all kinds of
securities, incl. under-writing and placement
as agent (whether publicly or privately) and
provision of service related to such issues
Money broking
Asset management, such as cash or portfolio
management, all forms of collective
investment management, pension fund
management, custodial depository and
trust services
Settlement and clearing services for financial
assets, incl. securities, derivative products,
or
and other negotiable instruments
Advisory and other auxiliary financial
services on all the activities listed in
or
Article 1B of MTN.TNC/W/50, incl. credit
reference and analysis, investment and
portfolio research and advice, advice on
acquisitions and on corporate restructuring and strategy
Provision and transfer of financial information,
and financial data processing and related
software by providers of other financial services
81339**
81199**
81339**
81333
81339**
81339**
81321*
81339**
8132
81339**
8119+**
81323*
81339**
81319**
8131
8133
8131
C.
Other
8.
HEALTH RELATED AND SOCIAL SERVICES
(other than those listed under 1.A.h-j.)
A.
Hospital services
9311
B.
Other Human Health Services
9319
(other than 93191)
C.
Social Services
933
D.
Other
9.
TOURISM AND TRAVEL RELATED SERVICES
A.
Hotels and restaurants (incl. catering)
641-643
B.
Travel agencies and tour operators services
7471
C.
Tourist guides services
7472
D.
Other
34
10.
RECREATIONAL, CULTURAL AND SPORTING SERVICES
(other than audiovisual services)
A.
Entertainment services (including theatre, live
bands and circus services)
9619
B.
News agency services
962
C.
Libraries, archives, museums and other
cultural services
963
D.
Sporting and other recreational services
964
E.
Other
11.
A.
a.
b.
c.
d.
e.
f.
TRANSPORT SERVICES
Maritime Transport Services
Passenger transportation
Freight transportation
Rental of vessels with crew
Maintenance and repair of vessels
Pushing and towing services
Supporting services for maritime transport
B.
a.
b.
c.
d.
e.
f.
Internal Waterways Transport
Passenger transportation
Freight transportation
Rental of vessels with crew
Maintenance and repair of vessels
Pushing and towing services
Supporting services for internal waterway
transport
C.
a.
b.
c.
d.
e.
Air Transport Services
Passenger transportation
Freight transportation
Rental of aircraft with crew
Maintenance and repair of aircraft
Supporting services for air transport
731
732
734
8868**
746
D.
Space Transport
733
E.
a.
b.
c.
d.
e.
Rail Transport Services
Passenger transportation
Freight transportation
Pushing and towing services
Maintenance and repair of rail transport equipment
Supporting services for rail transport services
7111
7112
7113
8868**
743
F.
a.
b.
c.
d.
e.
Road Transport Services
Passenger transportation
Freight transportation
Rental of commercial vehicles with operator
Maintenance and repair of road transport
equipment
Supporting services for road transport services
G.
a.
b.
Pipeline Transport
Transportation of fuels
Transportation of other goods
7211
7212
7213
8868**
7214
745**
7221
7222
7223
8868**
7224
745**
7121+7122
7123
7124
6112+8867
744
7131
7139
35
H.
a.
b.
c.
d.
I.
12.
Services auxiliary to all modes of transport
Cargo-handling services
Storage and warehouse services
Freight transport agency services
Other
Other Transport Services
OTHER SERVICES NOT INCLUDED ELSEWHERE
741
742
748
95+97+98+99
36
ANNEX 2
Approved GEF National and Regional Project Involving Only the
Member States of the Caribbean Community 1994-2009 (January)
PROJECT
PARTICIPATING COUNTRIES
Caribbean Planning for Adaptation to Global
Climate Change (CARICOM)
Regional (Antigua and Barbuda, Bahamas, Barbados, Belize,
Dominica, Grenada, Guyana, Jamaica, St. Kitts and Nevis, St. Lucia,
Trinidad and Tobago)
Regional (Antigua And Barbuda, Bahamas, Barbados, Belize,
Dominica, Grenada, Guyana, Jamaica, St. Kitts And Nevis, St. Lucia,
St. Vincent and Grenadines, Trinidad and Tobago)
Regional (Antigua and Barbuda, Bahamas, Barbados, Belize, British
Virgin Islands, Cuba, Dominica, Grenada, Guyana, Jamaica, St. Kitts
and Nevis, St. Lucia, St. Vincent and Grenadines, Suriname,
Trinidad and Tobago, Turks and Caicos)
Regional (Antigua and Barbuda, Barbados, Belize, Grenada, Guyana,
Jamaica, St. Lucia, Suriname, Trinidad and Tobago)
6,825,000.00
Regional (Bahamas, Belize, Grenada, Guyana, Suriname)
2,628,450.00
Regional (Antigua and Barbuda, Bahamas, Barbados, Cuba,
Dominica, Dominican Republic, Grenada, Haiti, Jamaica, St. Lucia,
St. Kitts and Nevis, St. Vincent and Grenadines, Trinidad and
Tobago)
Regional (Antigua And Barbuda, Barbados, Dominica, St. Kitts And
Nevis, St. Lucia, St. Vincent and Grenadines, Trinidad and Tobago)
13,990,841.00
Caribbean: Mainstreaming Adaptation to Climate
Change
Caribbean Renewable
Programme
Energy
Development
Building Capacity for Conducting Vulnerability
and Adaptation Assessments in the Caribbean
Region
BS Implementation of National Biosafety
Frameworks in Caribbean Sub Region Countries
of Bahamas, Belize, Grenada, Guyana and
Suriname in the Context of a Regional Project
Integrating Watershed and Coastal Area
Management (IWCAM) in the Small Island
Developing States of the Caribbean
BS Regional Project for Implementing National
Biosafety Frameworks in the Caribbean Subregion - under the GEF Biosafety Program
OECS Protected Areas
Sustainable Livelihoods
and
Associated
Implementation of Pilot Adaptation Measures in
coastal areas of Dominica, St. Lucia and St.
Vincent & the Grenadines
GEF
GRANT
(millions)
5,345,000.00
4,776,000.00
117,744 .00
3,454,545.00
Regional (Antigua And Barbuda, Dominica, Grenada, St. Kitts And
Nevis, St. Vincent and Grenadines, St. Lucia)
3,871,000.00
Regional (Dominica, St. Lucia, St. Vincent and Grenadines)
2,400,000.00
Total
56,275,774.00
.
Source: Compiled by the Author from the Global Environment Facility Project Data Base at www.gefweb.org
37